2001 Ron Paul Chapter 1

http://www.house.gov/paul/congrec/congrec2001/cr010301.htm
INTRODUCTION OF THE IDENTITY THEFT PREVENTION ACT — HON. RON PAUL

(Extensions of Remarks - January 03, 2001)
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, January 3, 2001


2001 Ron Paul Chapter 2

http://www.house.gov/paul/congrec/congrec2001/cr013101c.htm
INTRODUCTION OF THE EDUCATION IMPROVEMENT TAX CUT ACT — HON. RON PAUL
(Extensions of Remarks - January 31, 2001)
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, January 31, 2001


2001 Ron Paul Chapter 3

http://www.house.gov/paul/congrec/congrec2001/cr013101b.htm
INTRODUCTION OF THE FAMILY EDUCATION FREEDOM ACT — HON. RON PAUL
(Extensions of Remarks - January 31, 2001) 
---
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, January 31, 2001



2001 Ron Paul Chapter 4

http://www.house.gov/paul/congrec/congrec2001/cr013101.htm
INTRODUCTION OF THE TEACHER TAX CUT ACT — HON. RON PAUL
(Extensions of Remarks - January 31, 2001) 
---
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, January 31, 2001



2001 Ron Paul Chapter 5

http://www.house.gov/paul/congrec/congrec2001/cr020701.htm
February 07, 2001
CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
(House of Representatives - February 07, 2001)


2001 Ron Paul 5:1
The beginning of the 21st Century lends itself to a reassessment of our history and gives us an opportunity to redirect our country’s future course if deemed prudent.


 2001 Ron Paul 5:2
The main question before the new Congress and the Administration is: Are we to have gridlock or cooperation? Today we refer to cooperation as bipartisanship . Some argue that bipartisanship is absolutely necessary for the American democracy to survive. The media never mention a concern for the survival of the Republic. But there are those who argue that left-wing interventionism should give no ground to right-wing interventionism-that too much is at stake.


 2001 Ron Paul 5:3
The media are demanding the Bush Administration and the Republican Congress immediately yield to those insisting on higher taxes and more federal government intervention for the sake of national unity , because our government is neatly split between two concise philosophic views. But if one looks closely, one is more likely to find only a variation of a single system of authoritarianism, in contrast to the rarely mentioned constitutional, non-authoritarian approach to government.


 2001 Ron Paul 5:4
The big debate between the two factions in Washington boils down to nothing more than a contest over power and political cronyism, rather than any deep philosophic differences.


 2001 Ron Paul 5:5
The feared gridlock anticipated for the 107th Congress will differ little from the other legislative battles in recent previous congresses. Yes, there will be heated arguments regarding the size of budgets, local vs. federal control, and private vs. government solutions. But a serious debate over the precise role for government is unlikely to occur. I do not expect any serious challenge to the 20th Century consensus of both major parties-that the federal government has a significant responsibility to deal with education, health care, retirement programs, or managing the distribution of the welfare state benefits. Both parties are in general agreement on monetary management, environmental protection, safety and risks both natural and man-made. Both participate in telling others around the world how they must adopt a democratic process similar to ours, as we police our worldwide financial interests.

2001 Ron Paul 5:6
We can expect most of the media-directed propaganda to be designed to speed up and broaden the role of the federal government in our lives and the economy. Unfortunately, the token opposition will not present a principled challenge to big government, only an argument that we must move more slowly and make an effort to allow greater local decision-making. Without presenting a specific philosophic alternative to authoritarian intervention from the left, the opposition concedes that the principle of government involvement per se is proper, practical, and constitutional.


 2001 Ron Paul 5:7
The cliche Third Way has been used to define the so-called compromise between the conventional wisdom of the conservative and liberal firebrands. This nice-sounding compromise refers not only to the noisy rhetoric we hear in the US Congress but also in Britain, Germany, and other nations as well. The question, though, remains: Is there really anything new being offered? The demand for bipartisanship is nothing more than a continuation of the Third-Way movement of the last several decades.


 2001 Ron Paul 5:8
The effort always is to soften the image of the authoritarians who see a need to run the economy and regulate people’s lives, while pretending not to give up any of the advantages of the free market or the supposed benefits that come from a compassionate-welfare or a socialist government. It’s nothing more than political have-your-cake-and-eat-it-too deception. Many insecure and wanting citizens cling to the notion that they can be taken care of through government benevolence without sacrificing the free market and personal liberty. Those who anxiously await next month’s government check prefer not to deal with the question of how goods and services are produced and under what political circumstances they are most efficiently provided. Sadly, whether personal freedom is sacrificed in the process is a serious concern for only a small number of Americans.


 2001 Ron Paul 5:9
The Third Way , a bipartisan compromise that sounds less confrontational and circumvents the issue of individual liberty, free markets, and production is an alluring, but dangerous, alternative. The harsh reality is that it is difficult to sell the principles of liberty to those who are dependent on government programs. And this includes both the poor beneficiaries as well as the self-serving wealthy elites who know how to benefit from government policies. The authoritarian demagogues are always anxious to play on the needs of people made dependent by a defective political system of government intervention while perpetuating their own power. Anything that can help the people to avoid facing the reality of the shortcomings of the welfare/warfare state is welcomed. Thus our system is destined to perpetuate itself until the immutable laws of economics bring it to a halt at the expense of liberty and prosperity.


 2001 Ron Paul 5:10
Third Way compromise, or bipartisan cooperation, can never reconcile the differences between those who produce and those who live off others. It will only make it worse. Theft is theft, and forced redistribution of wealth is just that. The Third Way , though, can deceive and perpetuate an unworkable system when both major factions endorse the principle.


 2001 Ron Paul 5:11
In the last session of the Congress, the Majority Party, with bipartisan agreement, increased the Labor, Health and Human Services, and Education appropriations by 26% over the previous year, nine times the rate of inflation. The Education Department alone received $44 billion, nearly double Clinton’s first educational budget of 1993. The Labor, HHS, and Education appropriation was $34 billion more than the Republican budget had authorized.


 2001 Ron Paul 5:12
Already the spirit of bipartisanship has prompted the new president to request another $10 billion, along with many more mandates on public schools. This is a far cry from the clear constitutional mandate that neither the Congress nor the federal courts have any authority to be involved in public education.


 2001 Ron Paul 5:13
The argument that this bipartisan approach is a reasonable compromise between the total free-market or local-government approach and that of a huge activist centralized government approach may appeal to some, but it is fraught with great danger. Big government clearly wins; limited government and the free market lose. Any talk of a Third Way is nothing more than propaganda for big government. It’s no compromise at all. The principle of federal government control is fully endorsed by both sides, and the argument that the Third Way might slow the growth of big government falls flat. Actually, with bipartisan cooperation, government growth may well accelerate.


 2001 Ron Paul 5:14
How true bipartisanship works in Washington is best illustrated by the way a number of former Members of Congress make a living after leaving office. They find it quite convenient to associate with other former Members of the opposing party and start a lobbying firm. What might have appeared to be contentious differences when in office are easily put aside to lobby their respected party Members. Essentially no philosophic difference of importance exists-it’s only a matter of degree and favors sought, since both parties must be won over. The differences they might have had while they were voting Members of Congress existed only for the purpose of appealing to their different constituencies, not serious differences of opinion as to what the role of government ought to be. This is the reality of bipartisanship. Sadly our system handsomely rewards those who lobby well and in a bipartisan fashion. Congressional service too often is a training ground or a farm system for the ultimate government service: lobbying Congress for the benefit of powerful and wealthy special interests.


 2001 Ron Paul 5:15
It should be clearly evident, however, that all the campaign finance reforms and lobbying controls conceivable will not help the situation. Limiting the right to petition Congress or restricting people’s right to spend their own money will always fail and is not morally acceptable and misses the point. As long as government has so much to offer, public officials will be tempted to accept the generous offers of support from special interests. Those who can benefit have too much at stake not to be in the business of influencing government. Eliminating the power of government to pass out favors is the only real solution. Short of that, the only other reasonable solution must come by Members’ refusal to be influenced by the pressure that special-interest money can exert. This requires moral restraint by our leaders. Since this has not happened, special-interest favoritism has continued to grow.

2001 Ron Paul 5:16
The bipartisanship of the last 50 years has allowed our government to gain control over half of the income of most Americans. Being enslaved half the time is hardly a good compromise. But supporters of the political status quo point out that, in spite of the loss of personal freedom, the country continues to thrive in many ways.


 2001 Ron Paul 5:17
But there are some serious questions that we as a people must answer:

2001 Ron Paul 5:24
As we move into the next Congress, some worry that gridlock will make it impossible to get needed legislation passed. This seems highly unlikely. If big government supporters found ways to enlarge the government in the past, the current evenly split Congress will hardly impede this trend and may even accelerate it. With a recession on the horizon, both sides will be more eager than ever to cooperate on expanding federal spending to stimulate the economy , whether the fictitious budget surplus shrinks or not.


 2001 Ron Paul 5:25
In this frantic effort to take care of the economy, promote education, save Social Security, and provide for the medical needs of all Americans, no serious discussion will take place on the political conditions required for a free people to thrive. If not, all efforts to patch the current system together will be at the expense of personal liberty, private property, and sound money.


 2001 Ron Paul 5:26
If we are truly taking a more dangerous course, the biggest question is: How long will it be before a major political-economic crisis engulfs our land? That, of course, is not known, and certainly not necessary if we as a people and especially the Congress understand the nature of the crisis and do something to prevent the crisis from undermining our liberties. We should, instead, encourage prosperity by avoiding any international conflict that threatens our safety or wastefully consumes our needed resources.


 2001 Ron Paul 5:27
Congressional leaders have a responsibility to work together for the good of the country. But working together to promote a giant interventionist state dangerous to us all is far different from working together to preserve constitutionally protected liberties.


 2001 Ron Paul 5:28
Many argue that the compromise of bipartisanship is needed to get even a little of what the limited-government advocates want. But this is a fallacious argument. More freedom can never be gained by giving up freedom, no matter the rationale.


 2001 Ron Paul 5:29
If liberals want $46 billion for the Department of Education and conservatives argue for $42 billion, a compromise of $44 billion is a total victory for the advocates of federal government control of public education. “Saving” $2 billion means nothing in the scheme of things, especially since the case for the constitutional position of zero funding was never entertained. When the budget and government controls are expanding each year, a token cut in the proposed increase means nothing, and those who claim it to be a legitimate victory do great harm to the cause of liberty by condoning the process. Instead of it being a Third Way alternative to the two sides arguing over minor details on how to use government force, the three options instead are philosophically the same. A true alternative must be offered if the growth of the state is to be contained. Third-Way bipartisanship is not the answer.


2001 Ron Paul 5:30
However, if in the future, the constitutionalists argue for zero funding for the Education Department, and the liberals argue to increase it to $50 billion, and finally $25 billion is accepted as the compromise, progress will have been made.


 2001 Ron Paul 5:31
But this is not what is being talked about in DC when an effort is made to find a Third Way . Both sides are talking about expanding government, and neither side questions the legitimacy of the particular program involved. Unless the moral and constitutional debate changes, there can be no hope that the trend toward bigger government with a sustained attack on personal liberty will be reversed. It must become a moral and constitutional issue.


2001 Ron Paul 5:32
Budgetary tokenism hides the real issue. Even if someone claims to have just saved the taxpayers a couple billion dollars, the deception does great harm in the long run by failure to emphasize the importance of the Constitution and the moral principles of liberty. It instead helps to deceive the people into believing something productive is being done. But it’s really worse than that, because neither party makes an effort to cut the budget. The American people must prepare themselves for ever-more spending and taxes.


 2001 Ron Paul 5:33
A different approach is needed if we want to protect the freedoms of all Americans, to perpetuate prosperity, and to avoid a major military confrontation. All three options in reality represent only a variation of the one based on authoritarian and interventionist principles.


 2001 Ron Paul 5:34
Nothing should be taken for granted, neither our liberties nor our material well being. Understanding the nature of a free society and favorably deciding on its merit are required before true reform can be expected. If, however, satisfaction and complacency with the current trend toward bigger and more centralized government remain the dominant view, those who love liberty more than promised security must be prepared for an unpleasant future. And those alternative plans will surely vary from one another. Tragically for some it will contribute to the violence that will surely come when promises of government security are not forthcoming. We can expect further violations of civil liberties by a government determined to maintain order when difficult economic and political conditions develop.


 2001 Ron Paul 5:35
But none of this needs occur if the principles that underpin our Republic, as designed by the Founders, can be resurrected and re-instituted. Current problems that we now confront are government-created and can be much more easily dealt with when government is limited to its proper role of protecting liberty, instead of promoting a welfare-fascist state.


 2001 Ron Paul 5:36
There are reasons to be optimistic that the principles of the Republic, the free market, and respect for private property can be restored. However, there remains good reason as well to be concerned that we must confront the serious political and economic firestorm seen on the horizon before that happens.


 2001 Ron Paul 5:37
My concerns are threefold: the health of the economy, the potential for war, and the coming social discord. If our problems are ignored, they will further undermine the civil liberties of all Americans. The next decade will be a great challenge to all Americans.


 2001 Ron Paul 5:38
The Economy

2001 Ron Paul 5:39
The booming economy of the last six years has come to an end. The only question remaining is how bad the slump will be. Although many economists expressed surprise at the sudden and serious shift in sentiment, others have been warning of its inevitability. Boom times built on central-bank credit creation always end in recession or depression. But central planners, being extremely optimistic, hope that this time it will be different; that a new era has arrived.


2001 Ron Paul 5:40
For several years, we’ve heard the endless nostrum of a technology and productivity-driven new paradigm that would make the excesses of the 1990s permanent and real. Arguments that productivity increases made the grand prosperity of the last six years possible were accepted as conventional wisdom, although sound free-market analysts warned otherwise. We are now witnessing an economic downturn that will, in all likelihood, be quite serious. If our economic planners pursue the wrong course, they will surely make it much worse and prolong the recovery.


 2001 Ron Paul 5:41
Although computer technology has been quite beneficial to the economy, in some ways these benefits have been misleading by hiding the ill effects of central-bank manipulation of interest rates and by causing many to believe that the usual business-cycle correction could be averted. Instead, delaying a correction that is destined to come only contributes to greater distortions in the economy, thus requiring an even greater adjustment.


 2001 Ron Paul 5:42
It seems obvious that we are dealing with a financial bubble now deflating. Certainly, most observers recognize that the NASDAQ was grossly overpriced. The question remains, though, as to what is needed for the entire economy to reach equilibrium and allow sound growth to resume.


 2001 Ron Paul 5:43
Western leaders for most of the 20th Century have come to accept a type of central planning they believe is not burdened by the shortcomings of true socialist-type central planning. Instead of outright government ownership of the means of production, the economy was to be fine-tuned by fixing interest rates (FED Funds Rates), subsidizing credit (Government Sponsored Enterprises), stimulating sluggish segments of the economy (Farming and the Weapons Industry), aiding the sick (Medicaid and Medicare), federally managing education (Department of Education), and many other welfare schemes.


 2001 Ron Paul 5:44
The majority of Americans have not yet accepted the harsh reality that this less-threatening, friendlier type of economic planning is minimally more efficient than that of the socialist planners with their five-year economic plans. We must face the fact that the business cycle, with its recurring recessions, wage controls, wealth transfers, and social discord are still with us and will get worse unless there is a fundamental change in economic and monetary policy. Regardless of the type, central economic planning is a dangerous notion.


 2001 Ron Paul 5:45
In an economic downturn, a large majority of our political leaders believe that the ill effects of recession can be greatly minimized by monetary and fiscal policy. Although cutting taxes is always beneficial, spending one’s way out of a recession is no panacea. Even if some help is gained by cutting taxes or temporary relief given by an increase in government spending, they distract from the real cause of the downturn: previously pursued faulty monetary policy. The consequences of interest-rate manipulation in a recession-along with tax and spending changes-are unpredictable and do not always produce the same results each time they’re used. This is why interest rates of less than 1% and massive spending programs have not revitalized Japan’s economy or her stock market. We may well be witnessing the beginning of a major worldwide economic downturn, making even more unpredictable the consequence of conventional western-style central bank tinkering.


 2001 Ron Paul 5:46
There’s good reason to believe the Congress and the American people ought to be concerned and start preparing for a slump that could play havoc with our federal budget and the value of the American dollar. Certainly the Congress has a profound responsibility in this area. If we ignore the problems, or continue to endorse the economic myths of past generations, our prosperity will be threatened. But our liberties could be lost, as well, if expanding the government’s role in the economy is pursued as the only solution to the crisis.


 2001 Ron Paul 5:47
It’s important to understand how we got ourselves into this mess. The blind faith that wealth and capital can be created by the central bank’s creating money and credit out of thin air, using government debt as its collateral, along with fixing short-term interest rates, is a myth that must one day be dispelled. All the hopes of productivity increases in a dreamed-about new-era economy cannot repeal eternal economic laws.


 2001 Ron Paul 5:48
The big shift in sentiment of the past several months has come with a loss of confidence in the status of the new paradigm. If we’re not careful, the likely weakening of the US dollar could lead to a loss of confidence in America and all her institutions. US political and economic power has propped up the world economy for years. Trust in the dollar has given us license to borrow and spend way beyond our means. But just because world conditions have allowed us greater leverage to borrow and inflate the currency than otherwise might have been permitted, the economic limitations of such a policy still exist. This trust, however, did allow for a greater financial bubble to develop and dislocations to last longer, compared to similar excesses in less powerful nations.


 2001 Ron Paul 5:49
There is one remnant of the Bretton Woods gold-exchange standard that has aided US dominance over the past 30 years. Gold was once the reserve all central banks held to back up their currencies. After World War II, the world central banks were satisfied to hold dollars, still considered to be as good as gold since internationally the dollar could still be exchanged for gold at $35 an ounce. When the system broke down in 1971, and we defaulted on our promises to pay in gold, chaos broke out. By default the dollar maintained its status as the reserve currency of the world.


2001 Ron Paul 5:50
This is true, even to this day. The dollar still represents approximately 77% of all world central-bank reserves. This means that the United States has license to steal. We print the money and spend it overseas, while world trust continues because of our dominant economic and military power. This results in a current account and trade deficit so large that almost all economists agree that it cannot last. The longer and more extensive the distortions in the international market, the greater will be the crisis when the market dictates a correction. And that’s what we’re starting to see.


2001 Ron Paul 5:51
When the recession hits full force, even the extraordinary power and influence of Alan Greenspan and the Federal Reserve, along with all the other central banks of the world, won’t be able to stop the powerful natural economic forces that demand equilibrium. Liquidation of unreasonable debt and the elimination of the over-capacity built into the system and a return to trustworthy money and trustworthy government will be necessary. Quite an undertaking!


 2001 Ron Paul 5:52
Instead of looking at the real cost and actual reasons for the recent good years, politicians and many Americans have been all too eager to accept the new-found wealth as permanent and deserved, as part of a grand new era. Even with a national debt that continued to grow, all the talk in DC was about how to handle the magnificent budget surpluses.


2001 Ron Paul 5:53
Since 1998, when it was announced that we had a budgetary surplus to deal with, the national debt has nevertheless grown by more than $230 billion dollars, albeit at a rate less than in the early 1990s, but certainly a sum that should not be ignored. But the really big borrowing has been what the US as a whole has borrowed from foreigners to pay for the huge deficit we have in our current account. We are now by far the largest foreign debtor in the world and in all of history.


 2001 Ron Paul 5:54
This convenient arrangement has allowed us to live beyond our means and, according to long-understood economic laws, must end. A declining dollar confirms that our ability to painlessly borrow huge sums will no longer be cheap or wise.


 2001 Ron Paul 5:55
During the past 30 years in the post-Bretton Woods era, worldwide sentiment has permitted us to inflate our money supply and get others to accept the dollar as if it were as good as gold. This convenient arrangement has discouraged savings, which are now at an historic low. Savings in a capitalist economy are crucial for furnishing capital and establishing market interest rates. With negative savings and with the FED fixing rates by creating credit out of thin air and calling it capital, we have abandoned a necessary part of free-market capitalism, without which a smooth and growing economy is sustainable.


2001 Ron Paul 5:56
No one should be surprised when recessions hit or bewildered as to their cause or danger. The greater surprise should be the endurance of an economy fine-tuned by a manipulative central bank and a compulsively interventionist Congress. But the full payment for all past economic sins may now be required. Let’s hope we can keep the pain and suffering to a minimum.


 2001 Ron Paul 5:57
The most recent new era of the 1990s appeared to be an answer to all politicians’ dreams: a good economy, low unemployment, minimal price inflation, a skyrocketing stock market, with capital gains tax revenues flooding the Treasury, thus providing money to accommodate every special-interest demand. But it was too good to be true. It was based on an inflated currency and massive corporate, personal, and government borrowing. A recession was inevitable to pay for the extravagance that many knew was an inherent part of the new era, understanding that abundance without a commensurate amount of work was not achievable.


 2001 Ron Paul 5:58
The mantra now is for the FED to quickly lower short-term interest rates to stimulate the economy and alleviate a liquidity crisis. This policy may stimulate a boom and may help in a mild downturn, but it doesn’t always work in a bad recession. It actually could do great harm since it could weaken the dollar, which in turn would allow market forces instead to push long-term interest rates higher. Deliberately lowering interest rates isn’t even necessary for the dollar to drop, since our policy has led to a current-account deficit of a magnitude that demands the dollar eventually readjust and weaken.

2001 Ron Paul 5:59
A slumping stock market will also cause the dollar to decline and interest rates to rise. Federal Reserve Board central planning through interest-rate control is not a panacea. It is instead the culprit that produces the business cycle. Government and FED officials have been reassuring the public that no structural problems exists, citing no inflation and a gold price that reassures the world that the dollar is indeed still king.


 2001 Ron Paul 5:60
The FED can create excess credit, but it can’t control where it goes as it circulates throughout the economy; nor can it dictate value either. Claiming that a subdued government-rigged CPI and PPI proves that no inflation exists is pure nonsense. It is well established that, under certain circumstances, new credit inflation can find its way into the stock or real estate market, as it did in the 1920s, while consumer prices remain relatively stable. This does not negate the distortion inherit in a system charged with artificially low interest rates. Instead it allows the distortion to last longer and become more serious, leading to a bigger correction.


 2001 Ron Paul 5:61
If gold prices reflected the true extent of the inflated dollar, confidence in the dollar specifically and in paper more generally would be undermined. It is a high priority of the FED and all central banks of the world for this not to happen. Revealing to the public the fraud associated with all paper money would cause loss of credibility of all central banks. This knowledge would jeopardize the central banks’ ability to perform the role of lender of last resort and to finance/monetize government debt. It is for this reason that the price of gold in their eyes must be held in check.


 2001 Ron Paul 5:62
From 1945 to 1971, the United States literally dumped nearly 500 million ounces of gold at $35 an ounce in an effort to do the same thing by continuing the policy of printing money at will, with the hopes that there would be no consequences to the value of the dollar. That all ended in 1971 when the markets overwhelmed the world central banks.


2001 Ron Paul 5:63
A similar effort continues today, with central banks selling and loaning gold to keep the price in check. It’s working and does convey false confidence, but it can’t last. Most Americans are wise to the government’s statistics regarding prices and the “no-inflation” rhetoric. Everyone is aware that the prices of oil, gasoline, natural gas, medical care, repairs, houses, and entertainment have all been rapidly rising. The artificially low gold price has aided the government’s charade, but it has also allowed a bigger bubble to develop. This policy cannot continue. Economic law dictates a correction that most Americans will find distasteful and painful. Duration and severity of the liquidation phase of the business cycle can be limited by proper responses, but it cannot be avoided and could be made worse if the wrong course is chosen.


 2001 Ron Paul 5:64
Recent deterioration of the junk-bond market indicates how serious the situation is. Junk bonds are now paying 9% to 10% more than short-term government securities. The quality of business loans is suffering, while more and more corporate bonds are qualifying for junk status. The FED tries to reassure us by attempting to stimulate the economy with low short-term FED fund rates at the same time interest rates for businesses and consumers are rising. There comes a time when FED policy is ineffective, much to everyone’s chagrin.


 2001 Ron Paul 5:65
Micromanaging an economy effectively for a long period of time, even with the power a central bank wields, is an impossible task. The good times are ephemeral and eventually must be paid for by contraction and renewed real savings.


 2001 Ron Paul 5:66
There is much more to inflation than rising prices. Inflation is defined as the increase in the supply of money and credit. Obsessively sticking to the rising prices definition conveniently ignores placing the blame on the responsible party – the Federal Reserve. The last thing central banks or the politicians, who need a backup for all their spending mischief, want is for the government to lose its power to create money out of thin air, which serves political and privileged financial interests.


 2001 Ron Paul 5:67
When the people are forced to think only about rising prices, government-doctored price indexes can dampen concerns for inflation. Blame then can be laid at the doorstep of corporate profiteers, price gougers, labor unions, oil sheikhs, or greedy doctors. But it is never placed at the feet of highly paid athletes or entertainers. It would be economically incorrect to do so, but it’s political correctness that doesn’t allow some groups to be vilified.

2001 Ron Paul 5:68
Much else related to artificially low interest rates goes unnoticed. An overpriced stock market, overcapacity in certain industries, excesses in real-estate markets, artificially high bond prices, general mal-investments, excessive debt, and speculation all result from the generous and artificial credit the Federal Reserve pumps into the financial system. These distortions are every bit, if not more, harmful than rising prices. As the economy soars from the stimulus effect of low interest rates, growth and distortions compound themselves. In a slump the reverse is true, and the pain and suffering is magnified as the adjustment back to reality occurs.


 2001 Ron Paul 5:69
The extra credit in the 1990s has found its way especially into the housing market like never before. GSEs, in particular Freddie Mac and Fannie Mae, have gobbled up huge sums to finance a booming housing market. GSE securities enjoy implicit government guarantees, which have allowed for a generous discount on most housing loans. They have also been the vehicles used by consumers to refinance and borrow against their home equity to use these funds for other purposes, such as investing in the stock market. This has further undermined savings by using the equity that builds with price inflation that homeowners enjoy when money is debased. In addition, the Federal Reserve now buys and holds GSE securities as collateral in their monetary operations. These securities are then literally used as collateral for printing Federal Reserve notes; this is a dangerous precedent.


 2001 Ron Paul 5:70
If monetary inflation merely raised prices, and all prices and labor costs moved up at the same rate, and it did not cause dis-equilibrium in the market, it would be of little consequence. But inflation is far more than rising prices. Creating money out of thin air is morally equivalent to counterfeiting. It’s fraud and theft, because it steals purchasing power from the savers and those on fixed incomes. That in itself should compel all nations to prohibit it, as did the authors of our Constitution.


 2001 Ron Paul 5:71
Inflation is socially disruptive in that the management of fiat money-as all today’s currencies are- causes great hardships. Unemployment is a direct consequence of the constantly recurring recessions. Persistent rising costs impoverish many as the standard of living of unfortunate groups erodes. Because the pain and suffering that comes from monetary debasement is never evenly distributed, certain segments of society can actually benefit.

2001 Ron Paul 5:72
In the 1990s, Wall Streeters thrived, while some low-income, non-welfare, non-homeowners suffered with rising costs for fuel, rent, repairs, and medical care. Generally one should expect the middle class to suffer and to literally be wiped out in a severe inflation. When this happens, as it did in many countries throughout the 20th Century, social and political conflicts become paramount when finger pointing becomes commonplace by those who suffer looking for scapegoats. Almost always the hostility is inaccurately directed.


 2001 Ron Paul 5:73
There is a greater threat from the monetary mischief than just the economic harm it does. The threat to liberty resulting when economic strife hits and finger-pointing increases should concern us most. We should never be complacent about monetary policy.


 2001 Ron Paul 5:74
We must reassess the responsibility Congress has in maintaining a sound monetary system. In the 19th Century, the constitutionality of a central bank was questioned and challenged. Not until 1913 were the advocates of a strong federalist system able to foist a powerful central bank on us, while destroying the gold standard. This banking system, which now serves as the financial arm of Congress, has chosen to pursue massive welfare spending and a foreign policy that has caused us to be at war for much of the 20th Century.


2001 Ron Paul 5:75
Without the central bank creating money out of thin air, our welfare state and worldwide imperialism would have been impossible to finance. Attempts at economic fine-tuning by monetary authorities would have been impossible without a powerful central bank. Propping up the stock market as it falters would be impossible as well.


 2001 Ron Paul 5:76
But the day will come when we will have no choice but to question the current system. Yes, the FED does help to finance the welfare state. Yes, the FED does come to the rescue when funds are needed to fight wars and for us to pay the cost of maintaining our empire. Yes, the Fed is able to stimulate the economy and help create what appear to be good times. But it’s all built on an illusion. Wealth cannot come from a printing press. Empires crumble and a price is eventually paid for arrogance toward others. And booms inevitably turn into busts.


 2001 Ron Paul 5:77
Talk of a new era the past five years has had many, including Greenspan, believing that this time it really would be different. And it may indeed be different this time. The correction could be an especially big one, since the Fed-driven distortion of the past 10 years, plus the lingering distortions of previous decades have been massive. The correction could be big enough to challenge all our institutions, the entire welfare state, Social Security, foreign intervention, and our national defense. This will only happen if the dollar is knocked off its pedestal. No one knows if that is going to happen soon or later. But when it does, our constitutional system of government will be challenged to the core.


2001 Ron Paul 5:78
Ultimately the solution will require a recommitment to the principles of liberty, including a belief in sound money- when money once again will be something of value rather than pieces of paper or mere blips from a Federal Reserve computer. In spite of the grand technological revolution, we are still having trouble with a few simple basic tasks – counting votes or keeping the lights on or understanding the sinister nature of paper money.


 2001 Ron Paul 5:79
Potential for War

2001 Ron Paul 5:80
Foreign military interventionism, a policy the US has followed for over 100 years, encourages war and undermines peace. Even with the good intentions of many who support this policy, it serves the interests of powerful commercial entities. Perpetual conflicts stimulate military spending. Minimal and small wars too often get out of control and cause more tragedy than originally anticipated. Small wars like the Persian Gulf War are more easily tolerated, but the foolishness of an out-of-control war like Vietnam is met with resistance from a justifiably aroused nation. But both types of conflicts result from the same flawed foreign policy of foreign interventionism. Both types of conflicts can be prevented.


 2001 Ron Paul 5:81
National security is usually cited to justify our foreign involvement, but this excuse distracts from the real reason we venture so far from home. Influential commercial interests dictate policy of when and where we go. Persian Gulf oil obviously got more attention than genocide in Rwanda. If one were truly concerned about our security and enhancing peace, one would always opt for a less militarist policy. It’s not a coincidence that US territory and US citizens are the most vulnerable in the world to terrorist attacks. Escalation of the war on terrorism and not understanding its cause is a dangerous temptation.


2001 Ron Paul 5:82
Not only does foreign interventionism undermine chances for peace and prosperity, it undermines personal liberty. War and preparing for war must always be undertaken at someone’s expense. Someone must pay the bills with higher taxes, and someone has to be available to pay with their lives. It’s never the political and industrial leaders who promote the policy who pay. They are the ones who reap the benefits, while at the same time arguing for the policy they claim is designed to protect freedom and prosperity for the very ones being victimized.


 2001 Ron Paul 5:83
Many reasons given for our willingness to police the world sound reasonable: We need to protect our oil. We need to stop cocaine production in Colombia. We need to bring peace to the Middle East. We need to punish our adversaries. We must respond because we are the sole superpower and it’s our responsibility to maintain world order. It’s our moral obligation to settle disputes. We must follow up on our dollar diplomacy after sending foreign aid throughout the world. In the old days it was: we need to stop the spread of Communism. The excuses are endless!


 2001 Ron Paul 5:84
But it’s rarely mentioned that the lobbyists and proponents of foreign intervention are the weapons manufacturers, the oil companies, and the recipients of huge contracts for building infrastructures in whatever far corner of the earth we send our troops. Financial interests have a lot at stake, and it’s important for them that the United States maintains its empire. Not infrequently, ethnic groups will influence foreign policy for reasons other than preserving our security. This type of political pressure can at times be substantial and emotional.


 2001 Ron Paul 5:85
We often try to please too many, and by doing so support both sides of conflicts that have raged for centuries. In the end, our efforts can end up unifying our adversaries while alienating our friends.


 2001 Ron Paul 5:86
Over the past 50 years, Congress has allowed our presidents to usurp the prerogatives the Constitution explicitly gave only to the Congress. The term foreign policy is never mentioned in the Constitution and it was never intended to be monopolized by the president. Going to war was to be strictly a legislative function, not an Executive one.


 2001 Ron Paul 5:87
Operating foreign policy by Executive Orders and invoking unratified treaties is a slap in the face to the rule of law and our republican form of government. But that’s currently being done.


 2001 Ron Paul 5:88
US policy over the past 50 years has led to endless illegal military interventions, from Korea to our ongoing war with Iraq and military occupations in the Balkans. Many Americans have died and many others have been wounded or injured or have been forgotten. Numerous innocent victims living in foreign lands have died, as well, from the bombing and blockades we have imposed. They have been people with whom we have had no fight but who were trapped between the bad policy of their own leaders and our eagerness to demonstrate our prowess to the world. Over 500,000 Iraqi children have reportedly died as a consequence of our bombing and denying food and medicine by our embargo.


 2001 Ron Paul 5:89
For over 50 years, there has been a precise move toward one-world government at the expense of our own sovereignty. Our presidents claim that authority to wage war can come from the United Nations or NATO resolutions, in contradiction of our Constitution and everything our Founding Fathers believed. US troops are now required to serve under foreign commanders and wear UN insignias. Refusal to do so prompts a court martial.


 2001 Ron Paul 5:90
The past President, before leaving office, signed the 1998 UN Rome Treaty, indicating our willingness to establish an International Criminal Court. This gives the UN authority to enforce global laws against Americans if ratified by the Senate. Even without ratification, we have gotten to the point where treaties of this sort can be imposed on non-participating nations. Presidents have, by Executive Order, been willing to follow unratified treaties in the past. This is a very dangerous precedent.


 2001 Ron Paul 5:91
We already accept the WTO and its international trade court. Trade wars are fought with this court’s supervision, and we are only too ready to rewrite our tax laws as the WTO dictates. The only portion of the major tax bill at the end of the last Congress to be rushed through for the President’s signature was the Foreign Sales Corporation changes dictated to us by the WTO.


 2001 Ron Paul 5:92
For years the US has accepted the international financial and currency management of the IMF- another arm of one-world government.

2001 Ron Paul 5:93
The World Bank serves as the distributor of international welfare, of which the US taxpayer is the biggest donor. This organization helps carry out a policy of taking money from poor Americans and giving it to rich foreign leaders, with kickbacks to some of our international corporations. Support for the World Bank, the IMF, the WTO, and the International Criminal Court always comes from the elites and almost never from the common man.


 2001 Ron Paul 5:94
These programs run by the international institutions are supposed to help the poor, but they never do. It’s all a charade, and if left unchecked, they will bankrupt us and encourage more world government mischief.


2001 Ron Paul 5:95
It’s the responsibility of Congress to curtail this trend by reestablishing the principles of the US Constitution and our national sovereignty. It’s time for the United States to give up its membership in all these international organizations.


 2001 Ron Paul 5:96
Our foreign policy has led to an incestuous relationship between our military and Hollywood. In December, Secretary of Defense William S. Cohen used $295,000 of taxpayer money to host a party in Los Angeles for Hollywood bigwigs. Pentagon spokesman Kenneth Bacon said it was well worth it. The purpose was to thank the movie industry for putting the military in a good light . A similar relationship has been reported with TV stations licensed by the US government. They have been willing to accept suggestions from the government to place political messages in their programming. This is a dangerous trend, mixing government and the media. Now here’s where real separation is needed!


 2001 Ron Paul 5:97
Our policy should change for several reasons. It’s wrong for our foreign policy to serve any special interest, whether it’s for financial benefits, ethnic pressures, or some contrived moral imperative. Too often the policy leads to an unintended consequence, and more people are killed and more property damaged than was intended. Controlling world events is never easy. It’s better to avoid the chance of one bad decision leading to another. The best way to do that is to follow the advice of the Founders and avoid all entangling alliances and pursue a policy designed solely to protect US national security interests.


 2001 Ron Paul 5:98
The two areas in the world that currently present the greatest danger to the United States are Colombia and the Middle East. For decades, we have been engulfed in the ancient wars of the Middle East by subsidizing and supporting both sides. This policy is destined to fail. We are in great danger of becoming involved in a vicious war for oil, as well as being drawn into a religious war that will not end in our lifetime. The potential for war in this region is great, and the next one could make the Persian Gulf War look small. Only a reassessment of our entire policy will keep us from being involved in a needless and dangerous war in this region.


2001 Ron Paul 5:99
It will be difficult to separate any involvement in the Balkans from a major conflict that breaks out in the Middle East. It’s impossible for us to maintain a policy that both supports Israel and provides security for Western-leaning secular Arab leaders, while at the same time taunting the Islamic fundamentalists. Push will come to shove, and when that happens in the midst of an economic crisis, our resources will be stretched beyond the limit. This must be prevented.


 2001 Ron Paul 5:100
Our involvement in Colombia could easily escalate into a regional war. For over 100 years, we have been involved in the affairs of Central America, but the recent escalation of our presence in Colombia is inviting trouble for us.


2001 Ron Paul 5:101
Although the justification for our enhanced presence is the War on Drugs, protecting US oil interests and selling helicopters are the real reasons for last years’ $1.3 billion emergency funding. Already neighboring countries have expressed concern about our presence in Colombia. The US policymakers gave their usual response by promising more money and support to the neighboring countries that feel threatened.


 2001 Ron Paul 5:102
Venezuela, rich in oil, is quite nervous about our enhanced presence in the region. Their foreign minister stated that if any of our ships enter the Gulf of Venezuela they will be expelled . This statement was prompted by an overly aggressive US Coast Guard vessel’s intrusion into Venezuelan territorial waters on a drug expedition. I know of no one who believes this expanded and insane drug war will do anything to dampen drug usage in the United States. Yet it will cost us plenty. Too bad our political leaders cannot take a hint. The war effort in Colombia is small now, but under current conditions it will surely escalate. This is a 30-year-old civil war being fought in the jungles of South America. We are unwelcome by many, and we ought to have enough sense to stay out of it. Recently new policy has led to the spraying of herbicides to destroy the coca fields. It’s already been reported that the legal crops in nearby fields have been destroyed as well. This is no way to win friends around the world.


 2001 Ron Paul 5:103
There are many other areas of the world where we ought to take a second look, and then come home. Instead of bullying the European Union for wanting to have their own rapid deployment force, we should praise them and bring our troops home. World War II has been over for 55 years.

2001 Ron Paul 5:104
It’s time we look at Korea and ask why we have to broker, with the use of American dollars and American soldiers, the final settlement between North and South Korea.


2001 Ron Paul 5:105
Taiwan and China are now trading and investing in each other’s country. Travel restrictions have been recently liberalized. It’s time for us to let the two of them settle their border dispute.


 2001 Ron Paul 5:106
We continue to support Turkey with dollars and weapons. We once supported Iraq with the same. Now we permit Turkey, armed with American weapons, to kill Kurds in Iraq, while we bomb the Iraqis if they do the same. It makes no sense.


 2001 Ron Paul 5:107
Selling weapons to both factions of almost all the major conflicts of the past 50 years reveals that our involvement is more about selling weapons than spreading the message of freedom. That message can never be delivered through force to others over their objection. Only a policy of peace, friendship, trade, and our setting a good example can inspire others to look to what once was the American tradition of liberty and justice for all. Entangling alliances won’t do it. It’s time for Congress and the American people to wake up.


 2001 Ron Paul 5:108
Social Discord

2001 Ron Paul 5:109
The political system of interventionism always leads to social discord. Interventionism is based on relative rights, majoritarianism, and disrespect for the Constitution. Degenerating moral standards of the people encourages and feeds on this system of special-interest favoritism, all of which contribute to the friction.


 2001 Ron Paul 5:110
Thomas Jefferson was worried that future generations might squander the liberties the American Revolution secured. Writing about future generations, Jefferson wondered if; “in the enjoyment of plenty, they would, lose the memory of freedom.” He believed: “Material abundance without character is the path to destruction.”


 2001 Ron Paul 5:111
The challenge to America today is clearly evident. We lack character, and we also suffer from a loss of respect, understanding, and faith in the liberty that offers so much. The American Republic has been transformed and only a remnant remains. It appears that in the midst of plenty, we have forgotten about freedom.


 2001 Ron Paul 5:112
We have just gone through a roaring decade with many Americans enjoying prosperity beyond their wildest dreams. Because this wealth was not always earned and instead resulted from borrowing, speculation, and inflation, the correction that’s to come will contribute to the social discord already inherent in a system of government interventionism. If, indeed, the economy enters a severe recession, which is highly possible, it will compound the problems characteristic of a system that encourages government supervision over all that we do.


 2001 Ron Paul 5:113
Conflicts between classes, races, ethnic groups, and even generations are already apparent. This is a consequence of pitting workers and producers against moochers and the special-interest rich. Divvying up half of the GDP through a process of confiscatory taxation invites trouble. It is more easily tolerated when wealth abounds; but when the economy slips, quiescent resentment quickly turns to noisy confrontation. Those who feel slighted become more demanding at the same time resources are diminished.


 2001 Ron Paul 5:114
But the system of government we have become accustomed to has, for decades, taken over responsibilities that were never intended to be the prerogative of the federal government under the Constitution. Although mostly well intended, the efforts at social engineering have caused significant damage to our constitutional Republic and have resulted in cynicism toward all politicians. Our presidents are now elected by less than 20% of those old enough to vote. Government is perceived to be in the business of passing out favors rather than protecting individual liberty. The majority of the people are made up of independents and non-voters.


 2001 Ron Paul 5:115
The most dramatic change in 20th Century social attitudes was the acceptance of abortion. This resulted from a change in personal morality that then led to legalization nationally through the courts and only occurred by perverting our constitutional system of government. The federal courts should never have been involved, but the Congress compounded the problem by using taxpayer funds to perform abortions both here and overseas. Confrontation between the pro-life and the pro-abortion forces is far from over. If government were used only to preserve life, rather than act as an accomplice in the taking of life, this conflict would not be nearly so rancorous.


 2001 Ron Paul 5:116
Once a society and a system of laws deny the importance of life, privacy and personal choice are difficult to protect. Since abortions have become commonplace, it has been easier to move the issue of active euthanasia to center stage. As government budgets become more compromised, economic arguments will surely be used to justify reasonable savings by not wasting vital resources on the elderly.


 2001 Ron Paul 5:117
Issues like abortion and euthanasia don’t disappear in a free society but are handled quite differently. Instead of condoning or paying for such acts, the state is responsible for protecting life, rather than participating in taking it. This is quite a different role for government than we currently have.

2001 Ron Paul 5:118
We can expect the pro-life and pro-abortion and euthanasia groups to become more vocal and confrontational in time, as long as government is used to commit acts that a large number of people find abhorrent. Partial-birth abortion dramatizes the issue at hand and clearly demonstrates how close we are to legalizing infanticide. This problem should be dealt with by the states and without the federal courts or US Congress involvement.


 2001 Ron Paul 5:119
The ill-conceived drug war of the past 30 years has caused great harm to our society. It has undermined privacy and challenged the constitutional rights of all our citizens. The accelerated attack on drug usage since the early 1970s has not resulted in any material benefit. Over $300 billion has been spent on this war, and we are all less free and poorer because of it. Civil liberties are sacrificed in all wars, both domestic and foreign. It’s clear that, even if it were a legitimate function for government to curtail drug usage, eliminating bad habits through government regulation is not achievable. Like so much else that government tries to do, the harm done is not always evenly distributed. Some groups suffer more than others, further compounding the problem by causing dissention and distrust.


 2001 Ron Paul 5:120
Anthony Lewis of the New York Times reported last year: “The 480,00 men and women now in US prisons on drug charges are 100,000 more than all prisoners in the European Union, where the population is 100 million more than ours.”


 2001 Ron Paul 5:121
There are ten times the number of prisoners for drug offenses than there were in 1980, and 80% of the drug arrests are for non-violent possession. In spite of all the money spent and energy wasted, drug usage continues at a record pace. Someday we must wake up and realize the federal drug war is a farce. It has failed and we must change our approach.


 2001 Ron Paul 5:122
As bad as drug addiction is and the harm it causes, it is miniscule compared to the dollar cost, the loss of liberty, and social conflict that results from our ill-advised drug war.


 2001 Ron Paul 5:123
Mandatory drug sentencing laws have done a great deal of harm by limiting the discretion that judges could use in sentencing victims in the drug war. Congress should repeal or change these laws, just as we found it beneficial to modify seizure and forfeiture laws two years ago.


 2001 Ron Paul 5:124
The drug laws, I’m sure, were never meant to be discriminatory, yet they are. In Massachusetts, 82.9% of the drug offenders are minorities, but they make up only 9% of the state population. The fact that crack-cocaine users are more likely to land in prison than powder-cocaine users, and with harsher sentences, discriminates against black Americans. A wealthy suburbanite caught using drugs is much less likely to end up in prison than someone from the inner city. This inequity adds to the conflict between races and between the poor and the police. And it’s unnecessary.


 2001 Ron Paul 5:125
There are no documented benefits from the drug war. Even if a reduction in drug usage could have been achieved, the cost in dollars and loss of liberty would never have justified it. But we don’t have that to deal with, since drug usage continues to get worse; in addition we have all the problems associated with the drug war.


2001 Ron Paul 5:126
The effort to diminish the use of drugs and to improve the personal habits of some of our citizens has been the excuse to undermine our freedoms. Ironically we spend hundreds of billions of dollars waging this dangerous war on drugs while government educational policies promote a huge and dangerous over-usage of Ritalin.


 2001 Ron Paul 5:127
Seizure and forfeiture laws, clearly in violation of the Constitution, have served as a terrible incentive for many police departments to raise money for law-enforcement projects outside the normal budgeting process. Nationalizing the police force for various reasons is a trend that should frighten all Americans. The drug war has been the most important factor in this trend.


 2001 Ron Paul 5:128
Medicinal use of illegal drugs, in particular marijuana, has been prohibited and greater human suffering has resulted. Imprisoning a person who is dying from cancer and Aids for using his own self-cultivated marijuana is absolutely bizarre and cruel.


 2001 Ron Paul 5:129
All addiction — alcohol and illegal drugs — should be seen as a medical problem, not a legal one. Improving behavior, just for the sake of changing unpopular habits, never works. It should never be the responsibility of government to do so. When government attempts to do this, the government and its police force become the criminals. When someone under the influence of drugs, alcohol (also a drug), or even from the lack of sleep causes injury to another, local law-enforcement officials have a responsibility. This is a far cry from the Justice Department using army tanks to bomb the Davidians because federal agents claimed an amphetamine lab was possibly on the premises.


 2001 Ron Paul 5:130
An interventionist government, by its nature, uses any excuse to know what the people are doing. Drug laws are used to enhance the IRS agent’s ability to collect every dime owed the government. These laws are used to pressure Congress to spend more dollars for foreign military operations in places such as Colombia. Artificially high drug prices allow government to clandestinely participate in the drug trade to raise funds to fight the secret controversial wars with off-budget funding. Both our friends and foes depend on the drug war at times for revenue to pursue their causes, which frequently are the same as ours.


 2001 Ron Paul 5:131
The sooner we wake up to this seriously flawed approach to fighting drug usage the better.


 2001 Ron Paul 5:132
The notion that the Federal government has an obligation to protect us from ourselves drives the drug war. But this idea also drives the do-gooders in Washington to involve themselves in every aspect of our lives. American citizens cannot move without being constantly reminded by consumer advocates, environmentalists, safety experts, and bureaucratic busybodies what they can or cannot do.


 2001 Ron Paul 5:133
Once government becomes our protector, there are no limits. Federal regulations dictate the amount of water in our commodes and the size and shape of our washing machines. Complicated USDA regulations dictate the size of the holes in Swiss cheese. We cannot even turn off our automobile airbags when they present a danger to a child without federal permission. Riding in a car without a seat belt may be unwise, but should it be a federal crime? Why not make us all wear rib pads and football helmets? That would reduce serious injury and save many dollars for the government health system.


2001 Ron Paul 5:134
Regulations on holistic medicine, natural remedies, herbs, and vitamins are now commonplace and continue to grow. Who gave the government the right to make these personal decisions for us? Are the people really so ignorant that only politicians and bureaucrats can make these delicate decisions for them?


 2001 Ron Paul 5:135
Today if a drug shows promise for treating a serious illness, and both patient and doctor would like to try it on an experimental basis, permission can be given only by the FDA- and only after much begging and pleading. Permission frequently is not granted, even if the dying patient is pleading to take the risk. The government is not anxious to give up any of its power to make these decisions. People in government think that’s what they are supposed to do for the good of the people .


 2001 Ron Paul 5:136
Free choice is what freedom is all about. And it means freedom to take risks as well. As a physician deeply concerned about the health of all Americans, I am convinced that the government encroachment into health-care choices has been very detrimental.


 2001 Ron Paul 5:137
There are many areas where the federal government has gotten involved when it shouldn’t have, and created more problems than it solved. There is no evidence that the federal government has improved education or medicine, in spite of the massive funding and mandates of the last 40 years. Yet all we hear is a call for increased spending and more mandates. How bad it will get before we reject the big-government approach is anybody’s guess.


 2001 Ron Paul 5:138
Welfarism and government interventionism are failed systems and always lead to ever-more intrusive government. The issue of privacy is paramount. Most Americans and Members of Congress recognize the need to protect everyone’s privacy. But the loss of privacy is merely the symptom of an authoritarian government. Effort can and should be made, even under today’s circumstances, to impede the government’s invasion of privacy.


2001 Ron Paul 5:139
We must realize that our privacy and our liberty will always be threatened as long as we instruct our government to manage a welfare state and to operate foreign policy as if we are the world’s policemen.


 2001 Ron Paul 5:140
If the trends we have witnessed over the past 70 years are not reversed, our economic and political system will soon be transposed into a fascist system. The further along we go in that direction, the more difficult it becomes to reverse the tide without undue suffering. This cannot be done unless respect for the rule of law is restored. That means all public officials must live up to their promise to follow the written contract between the people and the government: the US Constitution.


 2001 Ron Paul 5:141
For far too long, we have accepted the idea that government can and should take care of us. But that is not what a free society is all about. When government gives us something, it does two bad things. First it takes it from someone else; second, it causes dependency on government. A wealthy country can do this for long periods of time, but eventually the process collapses. Freedom is always sacrificed and eventually the victims rebel. As needs grow, the producers are unable or unwilling to provide the goods the government demands. Wealth then hides or escapes, going underground or overseas, prompting even more government intrusion to stop the exodus from the system. This only compounds the problem.

2001 Ron Paul 5:142
Endless demands and economic corrections that come with the territory will always produce deficits. An accommodating central bank then is forced to steal wealth through the inflation tax by merely printing money and creating credit out of thin air. Even though these policies may work for a while, eventually they will fail. As wealth is diminished, recovery becomes more difficult in an economy operating with a fluctuating fiat currency and a marketplace overly burdened with regulation, taxes, and inflation.


 2001 Ron Paul 5:143
The time to correct these mistakes is prior to the bad times, before tempers flair. Congress needs to consider a new economic and foreign policy.

2001 Ron Paul 5:144
Conclusion

2001 Ron Paul 5:145
Why should any of us be concerned about the future, especially if prosperity is all around us? America has been truly blessed. We are involved in no major military conflict. We remain one of the freest nations on earth. Current economic conditions have allowed for low unemployment and a strong dollar, with cheap purchases from overseas, further helping to keep price inflation in check. Violent crimes have been reduced, and civil disorder, such as we saw in the 1960s, is absent.


2001 Ron Paul 5:146
But we have good reason to be concerned for our future. Prosperity can persist, even after the principles of a sound market economy have been undermined, but only for a limited period of time.


 2001 Ron Paul 5:147
Our economic, military, and political power, second to none, has perpetuated a system of government no longer dependent on the principles that brought our Republic to greatness. Private-property rights, sound money, and self-reliance have been eroded, and they have been replaced with welfarism, paper money, and collective management of property. The new system condones special-interest cronyism and rejects individualism, profits, and voluntary contracts.


 2001 Ron Paul 5:148
Concern for the future is real, because it’s unreasonable to believe that the prosperity and relative tranquility can be maintained with the current system. Not being concerned means that one must be content with the status quo and that current conditions can be maintained with no negative consequences. That, I maintain, is a dream.


 2001 Ron Paul 5:149
There is growing concern about our future by more and more Americans. They are especially concerned about the moral conditions expressed in our movies, music, and television programs. Less concern is expressed regarding the political and economic system. A nation’s moral foundation inevitably reflects the type of government and, in turn, affects the entire economic and political system.


 2001 Ron Paul 5:150
In some ways I am pleasantly surprised by the concern expressed about America’s future, considering the prosperity we enjoy. Many Americans sense a serious problem in general, without specifically understanding the economic and political ramifications.


 2001 Ron Paul 5:151
Inflation, the erosion of the dollar, is always worse than the government admits. It may be that more Americans are suffering than is generally admitted. Government intrusion in our lives is commonplace. Some unemployed aren’t even counted. Lower-middle-class citizens have not enjoyed an increase in the standard of living many others have. The fluctuation in the stock market may have undermined confidence.


2001 Ron Paul 5:152
Most Americans still believe everyone has a right to a free education, but they don’t connect this concept to the evidence: that getting a good education is difficult; that drugs are rampant in public schools; that safety in public schools is a serious problem; and that the cost is amazing for a system of free education if one wants a real education.


 2001 Ron Paul 5:153
The quality of medical care is slipping, and the benefits provided by government are seen by more and more people to not really be benefits at all. This trend does not make America feel more confident about the future of health care.


 2001 Ron Paul 5:154
Let there be no doubt, many Americans are concerned about their future, even though many still argue that the problem is only that government has not done enough.


 2001 Ron Paul 5:155
I have expressed concern that our policies are prone to lead to war, economic weakness, and social discord. Understanding the cause of these problems is crucial to finding a solution. If we opt for more government benevolence and meddling in our lives, along with more military adventurism, we have to expect an even greater attack on the civil liberties of all Americans, both rich and poor.


 2001 Ron Paul 5:156
America continues to be a great country, and we remain prosperous. We have a system of freedom and opportunities that motivate many in the world to risk their lives trying to get here.


 2001 Ron Paul 5:157
The question remains: can we afford to be lax in the defense of liberty at this juncture in our history? I don’t think so.


 2001 Ron Paul 5:158
The problems are not complex, and even the big ones can be easily handled if we pursue the right course. Prosperity and peace can be continued, but not with the current system that permeates Washington. To blindly hope our freedom will remain intact, without any renewed effort in its defense, or to expect that the good times will automatically continue, places our political system in great danger.


 2001 Ron Paul 5:159
Basic morality, free markets, sound money, living within the rule of law, and adhering to the fundamental precepts that made the American Republic great are what we need. And it’s worth the effort.

2001 Ron Paul Chapter 6

http://www.house.gov/paul/congrec/congrec2001/cr020801.htm
February 08, 2001
POTENTIAL FOR WAR
(House of Representatives - February 08, 2001) 
---


2001 Ron Paul 6:1
   The SPEAKER pro tempore. Under the Speaker’s announced policy of January 3, 2001, the gentleman from Texas (Mr. PAUL ) is recognized for 60 minutes as the designee of the majority leader.

2001 Ron Paul 6:2
   Mr. PAUL. Mr. Speaker, I have asked for this special order today to express my concerns for our foreign policy of interventionism that we have essentially followed throughout the 20th century.

2001 Ron Paul 6:3
   Mr. Speaker, foreign military interventionism, a policy the U.S. has followed for over 100 years, encourages war and undermines peace. Even with the good intentions of many who support this policy, it serves the interests of powerful commercial entities.

2001 Ron Paul 6:4
   Perpetual conflicts stimulate military spending. Minimal and small wars too often get out of control and cause more tragedy than originally anticipated. Small wars, like the Persian Gulf War, are more easily tolerated, but the foolishness of an out of-control war like Vietnam is met with resistance from a justifiably aroused Nation.

2001 Ron Paul 6:5
   But both types of conflicts result from the same flawed foreign policy of foreign interventionism. Both types of conflict can be prevented. National security is usually cited to justify our foreign involvement, but this excuse distracts from the real reason we venture so far from home. Influential commercial interests dictate policy of when and where we go. Persian Gulf oil obviously got more attention than genocide in Rwanda.

2001 Ron Paul 6:6
   If one were truly concerned about our security and enhancing peace, one would always opt for a less militaristic policy. It is not a coincidence that U.S. territory and U.S. citizens are the most vulnerable in the world to terrorist attacks.

2001 Ron Paul 6:7
   Escalation of the war on terrorism and not understanding its causes is a dangerous temptation. Not only does foreign interventionism undermine chances for peace and prosperity, it undermines personal liberty. War and preparing for war must always be undertaken at someone’s expense. Someone must pay the bills with higher taxes, and someone has to be available to pay with their lives.

2001 Ron Paul 6:8
   It is never the political and industrial leaders who promote the policy who pay. They are the ones who reap the benefits, while at the same time arguing for the policy they claim is designed to protect freedom and prosperity for the very ones being victimized.

2001 Ron Paul 6:9
   Many reasons given for our willingness to police the world sound reasonable: We need to protect our oil; we need to stop cocaine production in Colombia; we need to bring peace in the Middle East; we need to punish our adversaries; we must respond because we are the sole superpower, and it is our responsibility to maintain world order; it is our moral obligation to settle disputes; we must follow up on our dollar diplomacy after sending foreign aid throughout the world. In the old days, it was, we need to stop the spread of communism.

2001 Ron Paul 6:10
   The excuses are endless. But it is rarely mentioned that the lobbyists and the proponents of foreign intervention are the weapons manufacturers, the oil companies, and the recipients of huge contracts for building infrastructures in whatever far corners of the Earth we send our troops. Financial interests have a lot at stake, and it is important for them that the United States maintains its empire.

2001 Ron Paul 6:11
   Not infrequently, ethnic groups will influence foreign policy for reasons other than preserving our security. This type of political pressure can at times be substantial and emotional. We often try to please too many, and by doing so support both sides of conflicts that have raged for centuries. In the end, our effort can end up unifying our adversaries while alienating our friends.

2001 Ron Paul 6:12
   Over the past 50 years, Congress has allowed our Presidents to usurp the prerogatives the Constitution explicitly gave only to the Congress. The term “foreign policy” is never mentioned in the Constitution, and it was never intended to be monopolized by the President. Going to war was to be strictly a legislative function, not an executive one. Operating foreign policy by executive orders and invoking unratified treaties is a slap in the face to the rule of law and our republican form of government. But that is the way it is currently being done.

2001 Ron Paul 6:13
   U.S. policy over the past 50 years has led to endless illegal military interventions, from Korea to our ongoing war with Iraq and military occupation in the Balkans. Many Americans have died and many others have been wounded or injured or have just simply been forgotten.

2001 Ron Paul 6:14
   Numerous innocent victims living in foreign lands have died as well from the bombings and the blockades we have imposed. They have been people with whom we have had no fight but who were trapped between the bad policy of their own leaders and our eagerness to demonstrate our prowess in the world. Over 500,000 Iraqi children have reportedly died as a consequence of our bombing and denying food and medicine by our embargo.

2001 Ron Paul 6:15
   For over 50 years, there has been a precise move towards one-world government at the expense of our own sovereignty. Our Presidents claim that our authority to wage wars come from the United Nations or NATO resolution, in contradiction to our Constitution and everything our Founding Fathers believed.

2001 Ron Paul 6:16
   U.S. troops are now required to serve under foreign commanders and wear U.N. insignias. Refusal to do so prompts a court-martial.

2001 Ron Paul 6:17
   The past President, before leaving office, signed the 1998 U.N.-Rome treaty indicating our willingness to establish an international criminal court. This gives the U.N. authority to enforce global laws against Americans if ratified by the Senate. But even without ratification, we have gotten to the point where treaties of this sort can be imposed on non-participating nations.

2001 Ron Paul 6:18
   Presidents have, by executive orders, been willing to follow unratified treaties in the past. This is a very dangerous precedent. We already accept the international trade court, the WTO. Trade wars are fought with the court’s supervision, and we are only too ready to rewrite our tax laws as the WTO dictates.

2001 Ron Paul 6:19
   The only portion of the major tax bill at the end of the last Congress to be rushed through for the President’s signature was the foreign sales corporation changes dictated to us by the WTO.

2001 Ron Paul 6:20
   For years the U.S. has accepted the international financial and currency management of the IMF, another arm of one-world government.

2001 Ron Paul 6:21
   The World Bank serves as the distributor of international welfare, of which the U.S. taxpayer is the biggest donor. This organization helps carry out a policy of taking money from poor Americans and giving it to rich foreign leaders, with kickbacks to some of our international corporations.

2001 Ron Paul 6:22
   Support for the World Bank, the IMF, the international criminal court, always comes from the elites and almost never from the common man. These programs, run by the international institutions, are supposed to help the poor, but they never do. It is all a charade. If left unchecked, they will bankrupt us and encourage more world government mischief.

2001 Ron Paul 6:23
   It is the responsibility of Congress to curtail this trend by reestablishing the principles of the U.S. Constitution and our national sovereignty. It is time for the United States to give up its membership in all these international organizations.

2001 Ron Paul 6:24
   Our foreign policy has led to an incestuous relationship between our military and Hollywood. In December, our Secretary of Defense used $295,000 of taxpayers’ money to host a party in Los Angeles for Hollywood bigwigs. Pentagon spokesman Kenneth Bacon said it was well worth it. The purpose was to thank the movie industry for putting the military in a good light.

2001 Ron Paul 6:25
   A similar relationship has been reported with TV stations licensed by the U.S. Government. They have been willing to accept suggestions from the government to place political messages in their programming. This is a dangerous trend, mixing government and the media. Here is where real separation is needed.

2001 Ron Paul 6:26
   Our policy should change for several reasons. It is wrong for our foreign policy to serve any special interest, whether it is for financial benefits, ethnic pressures, or some contrived moral imperative. Too often the policy leads to an unintended consequence, and more people are killed and more property damaged than was intended.

2001 Ron Paul 6:27
   Controlling world events is never easy. It is better to avoid the chance of one bad decision leading to another. The best way to do that is to follow the advice of the Founders and avoid all entangling alliances, and pursue a policy designed solely to protect U.S. national security interests.

2001 Ron Paul 6:28
   The two areas in the world that currently present the greatest danger to the United States are Colombia and the Middle East. For decades we have been engulfed in the ancient wars of the Middle East by subsidizing and supporting both sides. This policy is destined to fail. We are in great danger of becoming involved in a vicious war for oil, as well as being drawn into a religious war that will not end in our lifetime.

2001 Ron Paul 6:29
   The potential for war in this region is great, and the next one could make the Persian Gulf War look small. Only a reassessment of our entire policy will keep us from being involved in a needless and dangerous war in this region.

2001 Ron Paul 6:30
   It will be difficult to separate any involvement in the Balkans from a major conflict that breaks out in the Middle East. It is impossible for us to maintain a policy that both supports Israel and provides security for western-leaning secular Arab leaders, while at the same time taunting the Islamic fundamentalists. Push will come to shove, and when that happens in the midst of an economic crisis, our resources will be stretched beyond the limit. This must be prevented.

2001 Ron Paul 6:31
   Our involvement in Colombia could easily escalate into a regional war. For over 100 years, we have been involved in the affairs of Central America, but the recent escalation of our presence in Colombia is inviting trouble for us. Although the justification for our enhanced presence is the war on drugs, protecting U.S. oil interests and selling helicopters are the real reasons for the last year’s $1.3 billion emergency funding.

2001 Ron Paul 6:32
   Already neighboring countries have expressed concern about our presence in Colombia. The U.S. policymakers gave their usual response by promising more money and support to the neighboring countries that feel threatened.

2001 Ron Paul 6:33
   Venezuela, rich in oil, is quite nervous about our enhanced presence in the region. Their foreign minister stated that if any of our ships enter the Gulf of Venezuela, they will be expelled. This statement was prompted by an overly aggressive U.S. Coast Guard vessel intrusion into Venezuela’s territorial waters on a drug expedition. I know of no one who believes this expanded and insane drug war will do anything to dampen drug usage in the United States, yet it will cost us plenty.

2001 Ron Paul 6:34
   Too bad our political leaders cannot take a hint. The war effort in Colombia is small now, but under current conditions, it will surely escalate. This is a 30-year-old civil war being fought in the jungles of South America. We are unwelcome by many, and we ought to have enough sense to stay out of it.

2001 Ron Paul 6:35
   Recently, new policy has led to the spraying of herbicides to destroy the coca fields. It has already been reported that the legal crops in the nearby fields have been destroyed, as well. This is no way to win friends around the world.

2001 Ron Paul 6:36
   There are many other areas of the world where we ought to take a second look and then come home. Instead of bullying the European Union for wanting to have their own rapid deployment force, we should praise them and bring our troops home.

2001 Ron Paul 6:37
   World War II has been over for 55 years. It is time we look at Korea and ask why we have to broker, with the use of American dollars and American soldiers, the final settlement between North and South Korea. Taiwan and China are now trading and investing in each other’s country. Travel restrictions have been recently liberalized. It is time for us to let the two of them settle their border dispute.

2001 Ron Paul 6:38
   We continue to support Turkey with dollars and weapons. We once supported Iraq with the same. Now, we permit Turkey, armed with American weapons, to kill Kurds in Iraq, while we bomb the Iraqis if they do the same. It makes no sense.

2001 Ron Paul 6:39
   Selling weapons to both factions of almost all the major conflicts of the past 50 years reveals that our involvement is more about selling weapons than spreading the message of freedom. That message can never be delivered through force to others over their objection. Only a policy of peace, friendship, trade, and our setting a good example can inspire others to look to what once was the American tradition of liberty and justice for all. Entangling alliances will not do it. It is time for Congress and the American people to wake up.

2001 Ron Paul 6:40
   The political system of interventionism always leads to social discord. Interventionism is based on relative rights, majoritarianism, and disrespect for the Constitution. Degenerating moral standards of the people encourages and feeds on this system of special interest favoritism, all of which contributes to the friction.

2001 Ron Paul 6:41
   Thomas Jefferson was worried that future generations might one day squander the liberties the American Revolution secured. Writing about future generations, Jefferson wondered if, in the enjoyment of plenty, they would lose the memory of freedom. He believed material abundance without character is the path to destruction.

2001 Ron Paul 6:42
   The challenge to America today is clearly evident. We lack character. And we also suffer from the loss of respect, understanding, and faith in the liberty that offers so much. The American Republic has been transformed and only a remnant remains. It appears that, in the midst of plenty, we have forgotten about freedom.

2001 Ron Paul 6:43
   We have just gone through a roaring decade with many Americans enjoying prosperity beyond their wildest dreams. Because this wealth was not always earned and instead resulted from borrowing, speculation and inflation, the correction that is to come will contribute to the social discord already inherent in a system of government interventionism.

2001 Ron Paul 6:44
   If indeed the economy enters a severe recession, which is highly possible, it will compound the problems characteristic of a system that encourages government supervision over all that we do.

2001 Ron Paul 6:45
   Conflicts between classes, races and ethnic groups and even generations are already apparent. This is a consequence of pitting workers and producers against the moochers and the special-interest rich. Divvying up half of the GDP through a process of confiscatory taxation invites trouble. It is more easily tolerated when wealth abounds. But when the economy slips, quiescent resentment quickly turns to noisey confrontation.

2001 Ron Paul 6:46
   Those who feel slighted become more demanding at the same time resources are diminished. But the system of government we have become accustomed to have has for decades taken over responsibilities that have never intended to be the prerogative of the Federal Government under the Constitution.

2001 Ron Paul 6:47
   Although mostly well-intended, the efforts at social engineering have caused significant damage to our constitutional republic and have resulted in cynicism toward all politicians.

2001 Ron Paul 6:48
   Our presidents now are elected by less than 20 percent of those old enough to vote. Government is perceived to be in the business of passing out favors rather than protecting individual liberty. The majority of the people are made up of independents and non-voters.

2001 Ron Paul 6:49
   The most dramatic change in the 20th century social attitudes was the acceptance of abortion. This resulted from a change in personal morality that then led to legislation nationally through the courts and only occurred by perverting our constitutional system of government.

2001 Ron Paul 6:50
   The Federal costs should never have been involved, but the Congress compounded the problem by using taxpayers’ funds to perform abortions both here and overseas. Confrontation between the pro-life and pro-abortion forces is far from over. If governments were used only to preserve life rather than act as an accomplice in the taking of life, this conflict would not nearly be so rancorous.

2001 Ron Paul 6:51
   Once a society and a system of laws deny the importance of life, privacy and personal choices are difficult to protect. Since abortions have become commonplace, it has been easier to move the issue of active euthanasia to center stage. As Government budgets become more compromised, economic arguments will surely be used to justify reasonable savings by not wasting vital resources on the elderly.

2001 Ron Paul 6:52
   Issues like abortion and euthanasia do not disappear in a free society but are handled quite differently. Instead of condoning or paying for such act, the State is responsible for protecting life rather than participating in taking it. This is quite a different role for Government than we currently have.

2001 Ron Paul 6:53
   We can expect the pro-life and pro-abortion and euthanasia groups to become more vocal and confrontational in time as long as Government is used to commit acts that a large number of people find abhorrent. Partial-birth abortion dramatize the issue at hand and clearly demonstrates how close we are to legalizing infanticide. This problem should be dealt with by the States and without the Federal courts or the U.S. Congress involvement.

2001 Ron Paul 6:54
   The ill-conceived drug war of the past 30 years has caused great harm to our society. It has undermined privacy and challenged the constitutional rights of all our citizens. The accelerated attack on drug usage seen since the early 1970s has not resulted in any material benefit. Over $300 billion has been spent on this war, and we are less free and poorer because of it. Civil liberties are sacrificed in all wars, both domestic and foreign.

2001 Ron Paul 6:55
   It is clear that even if it were a legitimate function for Government to curtail drug usage, eliminating bad habits through Government regulation is not achievable. Like so much else the Government tries to do, the harm done is not always evenly distributed. Some groups suffer more than others, further compounding the problem by causing dissention and distrust.

2001 Ron Paul 6:56
   Anthony Lewis of The New York Times reported last year, “The 480,000 men and women now in U.S. prisons on

2001 Ron Paul 6:57
   drug charges are 100,000 more than all prisoners in the European Union, where the population is 100 million more than ours.”

2001 Ron Paul 6:58
   There are 10 times the number of prisoners for drug offenses than there were in 1980, and 80 percent of the drug arrests are for nonviolent possession. In spite of all the money spent and energy wasted, drug usage continues at a record pace.

2001 Ron Paul 6:59
   Some day we must wake up and realize the Federal drug war is a farce, it has failed, and we must change our approach.

2001 Ron Paul 6:60
   As bad as drug addiction is and the harm it causes, it is minuscule compared to the dollar cost, the loss of liberty and social conflict that results from our ill-advised drug war.

2001 Ron Paul 6:61
   Mandatory drug sentencing have done a great deal of harm by limiting the discretion that judges could use in sentencing victims in this drug war. Congress should repeal or change these laws just as we found it beneficial to modify seizure and for forfeiture laws 2 years ago. The drug laws, I am sure, were never meant to be discriminatory. Yet they are.

2001 Ron Paul 6:62
   In Massachusetts, 82.9 percent of the drug offenders are minorities, but they make up only 9 percent of the State population. The fact that crack-cocaine users are more likely to land in prison than powder-cocaine users and with harsher sentences discriminates against black Americans.

2001 Ron Paul 6:63
   A wealthy suburbanite caught using drugs is much less likely to end up in prison than someone from the inner city. This inequity adds to the conflict between races and between the poor and the police. And it is so unnecessary.

2001 Ron Paul 6:64
   There are no documented benefits from the drug war. Even if reduction in drug usage could have been achieved, the cost in dollars and loss of liberty would never have justified it. But we do not have that to deal with since drug usage continues to get worse.

2001 Ron Paul 6:65
   In addition, we have all the problems associated with the drug war. The effort to diminish the use of drugs and to improve the personal habits of some of our citizens has been the excuse to undermine our freedoms.

2001 Ron Paul 6:66
   Ironically, we spend hundreds of billions of dollars waging this dangerous war on drugs while Government educational policies promote a huge and dangerous overusage of Ritalin. This makes no sense whatsoever.

2001 Ron Paul 6:67
   Seizure and forfeiture laws, clearly in violation of the Constitution, have served as a terrible incentive for many police departments to raise money for law enforcement projects outside the normal budgeting process. Nationalizing the police force for various reasons is a trend that should frighten all Americans. The drug war has been the most important factor in this trend.

2001 Ron Paul 6:68
   Medicinal use of illegal drugs, in particular, marijuana, has been prohibited and greater human suffering has resulted. Imprisoning a person who is dying from cancer and AIDS for using his own self-cultivated marijuana is absolutely bizarre and cruel.

2001 Ron Paul 6:69
   All addiction, alcohol and illegal drugs, should be seen as a medical problem, not a legal one. Improving behavior just for the sake of changing unpopular habits never works. It should never be the responsibility of government to do so. When government attempts to do this, the government and its police force become the criminals.

2001 Ron Paul 6:70
   When someone under the influence of drugs, alcohol, also a drug, or even from the lack of sleep, causes injury to another, local law enforcement officials have a responsibility. This is a far cry from the Justice Department using Army tanks to bomb the Davidians because Federal agents claimed an amphetamine lab was possibly on the premises.

2001 Ron Paul 6:71
   An interventionist government, by its nature, uses any excuse to know what the people are doing. Drug laws are used to enhance the IRS agent’s ability to collect every dime owed the government. These laws are used to pressure Congress to use more dollars for foreign military operations in places, such as Colombia. Artificially high drug prices allow governments to clandestinely participate in the drug trade to raise funds to fight the secret controversial wars with off-budget funding. Both our friends and foes depend on the drug war at times for revenue to pursue their causes, which frequently are the same as ours.

2001 Ron Paul 6:72
   The sooner we wake up to this seriously flawed approach to fighting drug usage, the better.

2001 Ron Paul 6:73
   The notion that the Federal Government has an obligation to protect us from ourselves drives the drug war. But this idea also drives the do-gooders in Washington to involve themselves in every aspect of our lives.

2001 Ron Paul 6:74
   American citizens cannot move without being constantly reminded by consumer advocates, environmentalists, safety experts and bureaucratic

2001 Ron Paul 6:75
   busybodies what they can or cannot do.

2001 Ron Paul 6:76
   Once government becomes our protector, there are no limits. Federal regulations dictate the amount of water in our commodes and the size and shape of our washing machines. Complicated USDA regulations dictate the size of the holes in Swiss cheese. We cannot even turn off our automobile air bags when they present a danger to a child without Federal permission.

2001 Ron Paul 6:77
   Riding in a car without a seatbelt may be unwise, but should it be a federal crime? Why not make us all wear rib pads and football helmets that would reduce serious injuries and save many dollars for the government health system.

2001 Ron Paul 6:78
   Regulations on holistic medicine, natural remedies, herbs and vitamins are now commonplace and continue to grow. Who gave the Government the right to make these personal decisions for us? Are the people really so ignorant that only the politicians and bureaucrats can make these delicate decisions for them?

2001 Ron Paul 6:79
   Today, if a drug shows promise for treating a serious illness and both patient and doctor would like to try it on an experimental basis, permission can be given only by the FDA and only after much begging. Permission frequently is not granted, even if the dying patient is pleading to take the risk.

2001 Ron Paul 6:80
   The Government is not anxious to give up any of its power to make these decisions. People in Government think that is what they are supposed to do for the good of the people. Free choice is what freedom is all about and it means freedom to take risks, as well.

2001 Ron Paul 6:81
   As a physician deeply concerned about the health of all Americans, I am convinced that the Government encroachment into the health care choices has been very detrimental.

2001 Ron Paul 6:82
   There are many areas where the Federal Government has been involved when they should not have and created more problems than it solved. There is no evidence that the Federal Government has improved education or medicine in spite of the massive funding and mandates of the last 40 years, yet all we hear is a call for increased spending and more mandates.

2001 Ron Paul 6:83
   How bad will it get before we reject the big government approach is anybody’s guess.

2001 Ron Paul 6:84
   Welfarism and government interventionism are failed systems and always lead to ever more intrusive government.

2001 Ron Paul 6:85
   The issue of privacy is paramount. Most Americans and Members of Congress recognize the need to protect everyone’s privacy. But the loss of privacy is merely the symptom of an authoritarian government.

2001 Ron Paul 6:86
   Effort can and should be made, even under today’s circumstances, to impede the Government’s invasion of privacy. But we must realize that our privacy and our liberty will always be threatened as long as we instruct our Government to manage a welfare state and to operate a foreign policy as if we are the world’s policemen.

2001 Ron Paul 6:87
   If the trends we have witnessed over the past 70 years are not reversed, our economic and political system will soon be transposed into a fascist system. The further along we go in that direction, the more difficult it becomes to reverse the tide without undue suffering. This cannot be done unless respect for the rule of law is restored. That means all public officials must live up to their promise to follow the written contract between the people and the Government, the U.S. Constitution.

2001 Ron Paul 6:88
   For far too long, we have accepted the idea that government can and should take care of us. But that is not what a free society is all about. When government gives us something, it does two bad things. First, it takes it from someone else; second, it causes dependency on government. A wealthy country can do this for long periods of time, but eventually the process collapses. Freedom is always sacrificed and eventually the victims rebel. As needs grow, the producers are unable or unwilling to provide the goods the government demands. Wealth then hides or escapes, going underground or overseas, prompting even more government intrusion to stop the exodus from the system. This only compounds the problem.

2001 Ron Paul 6:89
   Endless demands and economic corrections that come with the territory will always produce deficits. An accommodating central bank then is forced to steal wealth through the inflation tax by merely printing money and creating credit out of thin air. Even though these policies may work for awhile, eventually they will fail. As wealth is diminished, recovery becomes more difficult in an economy operating with a fluctuating fiat currency and a marketplace overly burdened with regulation, taxes and inflation.

2001 Ron Paul 6:90
   The time to correct these mistakes is prior to the bad times, before tempers flare. Congress needs to consider a new economic and foreign policy.

2001 Ron Paul 6:91
   Why should any of us be concerned about the future, especially if prosperity is all around us? America has been truly blessed. We are involved in no major military conflicts. We remain one of the freest nations on Earth. Current economic conditions have allowed for low unemployment and a strong dollar, with cheap purchases from overseas further helping to keep price inflation in check. Violent crimes have been reduced; and civil disorder, such as we saw in the 1960s, is absent.

2001 Ron Paul 6:92
   We have good reason to be concerned for our future. Prosperity can persist, even after the principles of a sound market economy have been undermined; but only for a limited period of time.

2001 Ron Paul 6:93
   Our economic, military, and political power, second to none, has perpetuated a system of government no longer dependent on the principles that brought our Republic to greatness. Private-property rights, sound money and self-reliance have been eroded; and they have been replaced with welfarism, paper money, and collective management of property. The new system condones special-interest cronyism and rejects individualism, profits and voluntary contracts.

2001 Ron Paul 6:94
   Concern for the future is real, because it is unreasonable to believe that the prosperity and relative tranquility can be maintained with the current system. Not being concerned means that one must be content with the status quo and that current conditions can be maintained with no negative consequences. That, I maintain, is a dream.

2001 Ron Paul 6:95
   There is growing concern about our future by more and more Americans. They are especially concerned about the moral conditions expressed in our movies, music and television programs. Less concern is expressed regarding the political and economic system. A nation’s moral foundation inevitably reflects the type of government and, in turn, affects the entire economic and political system.

2001 Ron Paul 6:96
   In some ways I am pleasantly surprised by the concern expressed about America’s future, considering the prosperity we enjoy. Many Americans sense a serious problem in general, without specifically understanding the economic and political ramifications.

2001 Ron Paul 6:97
   Inflation, the erosion of the dollar, is always worse than the government admits. It may be that more Americans are suffering than generally admitted. Government intrusion in our lives is commonplace. Some unemployed are not even counted. Lower middle-class citizens have not enjoyed an increase in the standard of living others have. The fluctuation in the stock market may have undermined confidence.

2001 Ron Paul 6:98
   Most Americans still believe everyone has a right to a free education, but they don’t connect this concept to the evidence: That getting a good education is difficult; that drugs are rampant in public schools; that safety in public schools is a serious problem; and that the cost is amazing for a system of free education if one wants a real education.

2001 Ron Paul 6:99
   The quality of medical care is slipping and the benefits provided by government are seen by more and more people to not really be benefits at all. This trend does not make Americans feel more confident about the future of health care. Let there be no doubt, many Americans are concerned about their future, even though many still argue that the problem is only that government has not done enough.

2001 Ron Paul 6:100
   I have expressed concern that our policies are prone to lead to war, economic weakness, and social discord. Understanding the cause of these problems is crucial to finding a solution. If we opt for more government benevolence and meddling in our lives, along with more military adventurism, we have to expect an even greater attack on the civil liberties of all Americans, both rich and poor.

2001 Ron Paul 6:101
   America continues to be a great country, and we remain prosperous. We
have a system of freedom and opportunities that motivate many in the world to risk their lives trying to get here.

2001 Ron Paul 6:102
   The question remains, though, can we afford to be lax in the defense of liberty at this juncture in our history? I do not think so.

2001 Ron Paul 6:103
   The problems are not complex, and even the big ones can be easily handled if we pursue the right course. Prosperity and peace can be continued, but not with the current system that permeates Washington. To blindly hope our freedom will remain intact without any renewed effort in its defense or to expect that the good times will automatically continue places our political system in great danger.

2001 Ron Paul 6:104
   Basic morality, free markets, sound money, and living within the rule of law, while clinging to the fundamental precepts that made the American Republic great, are what we need. And it is worth the effort. END

2001 Ron Paul Chapter 7

http://www.house.gov/paul/congrec/congrec2001/cr021301.htm
IDENTITY THEFT — HON. RON PAUL

(Extensions of Remarks - February 13, 2001)
 
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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, February 13, 2001


2001 Ron Paul Chapter 8

http://www.house.gov/paul/congrec/congrec2001/cr021401.htm
February 14, 2001
The Economy


2001 Ron Paul 8:1
Mr. Speaker: Many government and Federal Reserve officials have repeatedly argued that we have no inflation to fear. Yet those who claim this, define inflation as rising consumer and producer prices. Although inflation frequently leads to price increases we must remember that the free market definition of inflation is the increase in the supply of money and credit. Monetary inflation is seductive in that it can cause great harm without significantly affecting government price indices. The excess credit may well go into stock market and real estate speculation with consumer price increases limited to such things as energy, repairs, medical care and other services. One should not conclude, as so many have in the past decade, that we have no inflation to worry about. Imbalances did develop with the 1990’s monetary inflation but were ignored. They are now becoming readily apparent as sharp adjustments take place—such as we have seen in the past year in the NASDAQ.

2001 Ron Paul 8:2
When one is permitted to use “rising prices” as the definition for inflation it is followed by a nonsensical assumption that a robust economy is the cause for rising prices. Foolish conclusions of this sort lead our economic planners and Federal Reserve officials to attempt to “solve ” the problem of price or labor-cost inflation by precipitating an economic slowdown. Such a deliberate policy is anathema to a free market economy. It’s always hoped that the planned economic slowdown will never do serious harm, but this is never the case. The recession with rising prices still comes. And that’s what we are seeing today.

2001 Ron Paul 8:3
Raising interest rates 6 times in 1999-2000 has had an effect and the central planners are now worried. Falsely, they believe that if only the money spigot is once again turned on, all will be well. That will prove to be a pipe dream.

2001 Ron Paul 8:4
It is now recognized that indeed the economy has sharply turned downward—which is what was intended. But can the downturn be controlled? Not likely! And “inflation” by even the planner’s own definition is now raising its ugly head. For instance, in the fourth quarter of last year labor costs rose at an annualized rate of 6.6%, the biggest increase in 9 years.

2001 Ron Paul 8:5
And what’s happening to employment conditions? They’re deteriorating rapidly. Economist Ed Hyman, reported that 270,000 people lost their jobs in January, a 678% increase over a year ago. A growing number of economists are now doubtful that productivity growth will save us from the correction that many free market economists predicted would come as an inevitable consequence of the interest rate distortions that Federal Reserve policy causes.

2001 Ron Paul 8:6
Instead of blind faith in the Federal Reserve to run the economy, we should become more aware of Congress’s responsibility for maintaining a sound dollar and removing the monopoly power of our central bank to create money and credit out of thin air and fix short term interest rates—which is the real cause of all our economic downturns.

2001 Ron Paul 8:7
Between 1995 and today, the Greenspan Fed increased the money supply as measured by (MZM) by $1.9 trillion or a 65% increase. There is no reason to look any further for the explanation of why the economy is slipping with labor costs rising, energy costs soaring, and medical and education costs skyrocketing, while the stock market is disintegrating. Until we look at the unconstitutional monopoly power the Federal Reserve has over money and credit we can expect a continuation of our problems. Demanding lower interest rates is merely insisting the Federal Reserve deliberately create even more credit, which caused the problem in the first place. We cannot restore soundness to the dollar by debasing the dollar—which is what lowering interest rates is all about—printing more money.

2001 Ron Paul 8:8
When control is lost in a sharp downturn, dealing with it by massive monetary inflation, may well cause something worse than the stagflation that we experienced in the 1970s; an inflationary recession or depression could result.

2001 Ron Paul 8:9
This need not happen and won’t if we demand that our dollar not be casually and deliberately debased by our unaccountable Federal Reserve.

2001 Ron Paul Chapter 9

http://www.house.gov/paul/congrec/congrec2001/cr021401B.htm
February 14, 2001
The WAGE Act
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, February 14, 2001

2001 Ron Paul Chapter 10

http://www.house.gov/paul/congrec/congrec2001/cr022701.htm
February 27, 2001
Blame Congress for HMOs
BLAME CONGRESS FOR HMO’S — HON. RON PAUL (Extensions of Remarks - February 27, 2001)


2001 Ron Paul 10:1
[Page: E226] GPO’s PDF 
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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, February 27, 2001

2001 Ron Paul Chapter 11

http://www.house.gov/paul/congrec/congrec2001/cr030801.htm
March 8, 2001
Opposing National Teacher Certification or National Teacher Testing
OPPOSING NATIONAL TEACHER CERTIFICATION OR NATIONAL TEACHER TESTING — HON. RON PAUL (Extensions of Remarks - March 08, 2001)


2001 Ron Paul 11:1
[Page: E321] GPO’s PDF

2001 Ron Paul 11:2
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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, March 8, 2001

2001 Ron Paul Chapter 12

http://www.house.gov/paul/congrec/congrec2001/cr030801B.htm
March 8, 2001
Questions for Secretary of State Colin Powell before the House Committee on International Relations


2001 Ron Paul 12:1
Secretary Powell, thank you for your time and please answer the following questions:


 2001 Ron Paul 12:2
1. On the topic of the International Criminal Court, I have two questions. I am pleased that the administration, as well as the Chairman of this Committee, have spoken against the ICC treaty as an infringement upon U.S. sovereignty. As a policy matter, can you explain why the administration has not spoken similarly against the WTO, the International War Crimes Tribunal, or the idea of fighting wars based on UN or NATO resolutions and why these instrumentalities are any less threatening to our sovereignty? Also on the ICC topic, if the administration is not going to pursue ratification of the treaty, will you support my resolution, H Con Res 23, calling on the President to declare to all nations that the United States does not assent to the treaty and that the signature of former President Clinton should not be construed to mean otherwise?


2001 Ron Paul 12:3
2 . Since World War II, each of our Presidents have engaged in wars — both big and small, from Korea to the continued bombing of Iraq — without an explicit declaration of war from Congress. Yet, the Constitution clearly vests the decision to go to war (as opposed to its execution by the commander-in chief, once declared), with the Congress. If, however, the “war decision” is allowed to come from Presidential directives or UN resolutions, of what value to the American people is the Constitutional constraint upon a President who would otherwise wage war without Congressional approval? Do you believe the War Powers Resolution is unconstitutional? If so, why? If not, why not?


2001 Ron Paul 12:4
3. Is it not clear that a U.S. treaty, although it is called the law of the land, was never intended to be used to amend our Constitution?


 2001 Ron Paul 12:5
4. Why do we trade and subsidize a country like China, pursue talks with Iran and North Korea, and act as a conduit for peace in the Middle East while all we seem to know what to do with Iraq is bomb, kill, and impose sanctions? Surely we are not expected to believe Saddam Hussein is the only totalitarian in power today?


2001 Ron Paul 12:6
5. Is not the continued bombing of Iraq an act of war? Where does the administration get its authority to pursue this war? Is this policy not in violation of our Constitution that says only Congress can declare war? There is not even a UN resolution calling for the US-British imposed no-fly zone over Iraq. Our allies have almost all deserted us on our policy toward Iraq. Is it not time to talk to the Iraqis? We talked to the Soviets at the height of the Cold War, surely we can do the same with Iraq today. We trade with and subsidize China and we talk to the Iranians, surely we can trade with Iraq . . . ?


2001 Ron Paul 12:7
6. If investors of a foreign nation had a stake in oil production in the Gulf of Mexico and their country was dependent on oil imports for subsistence, is that country justified in militarily dominating the Gulf and use of U.S. soil for basing operations? My guess is Americans would be furious even if done with our government official’s approval. Yet we expect the Arab world — a world quite different from ours — to accept our presence and domination. Is it not possible for our policy in the region to show more “humility” rather than pursue a policy that incites Islamic fundamentalists against us leading to what they see as acts of self defense and we see as acts of terrorism?


2001 Ron Paul 12:8
7. How would you, the U.S. government, and the American people respond if a foreign power subsidized subversive groups whose goal it was to overthrow our government as we are doing with the Iraqi National Congress?


2001 Ron Paul 12:9
8. In your earlier remarks before this committee you said that you regard the military as a vital component of U.S. foreign policy. I am wondering if you, as a former military officer, would comment on the antiquated idea of a military draft and selective service registration. I believe you have spoken against the draft in the past. Do you still hold that a draft is unwarranted? Would you support ending draft registration?

2001 Ron Paul Chapter 13

http://www.house.gov/paul/congrec/congrec2001/cr031301.htm
March 13, 2001
The Beginning of the End of Fiat Money


2001 Ron Paul 13:1
The golden new Era of the 1990s has been welcomed and praised by many observers. But I’m afraid a different type of new era is arriving-a dangerous one- heralding the end of 30 years of fiat money. If so, it’s a serious matter that deserves close attention by Congress.

2001 Ron Paul 13:2
There’s nothing to fear from globalism, free trade and a single worldwide currency. But a globalism where free trade is competitively subsidized by each nation, a continuous trade war is dictated by the WTO, and the single currency is pure fiat, fear is justified. That type of globalism is destined to collapse into economic despair, inflationism and protectionism, and managed by resurgent militant nationalism.

2001 Ron Paul 13:3
Efforts to achieve peaceful globalist goals are quickly abandoned when the standard of living drops, unemployment rises, stock markets crash and artificially high wages are challenged by market forces. When tight budgets threaten spending cuts, cries for expanding the welfare state drown out any expression of concern for rising deficits.

2001 Ron Paul 13:4
The effort in recent decades to unify government surveillance over all world trade and international financial transactions through the UN, IMF, World Bank, WTO, ICC, the OECD, and the Bank of International Settlements can never substitute for a peaceful world based on true free trade, freedom of movement, a single but sound market currency, and voluntary contracts with private property rights.

2001 Ron Paul 13:5
Great emphasis in the last six years has been placed on so-called productivity increases that gave us the new-era economy. Its defenders proclaimed that a new paradigm had arrived. Though productivity increases have surely helped our economy, many astute observers have challenged the extent to which improvements in productivity have actually given us a distinctly unique new era. A case can be made that the great surge in new technology of the 1920’s far surpassed the current age of fast computers, and we all know what happened in after 1929.

2001 Ron Paul 13:6
A truly new era may well be upon us-but one quite different than what is generally accepted today.

2001 Ron Paul 13:7
The biggest error in interpreting today’s events is totally ignoring how monetary policy in a fiat system affects the entire economy.

2001 Ron Paul 13:8
Politicians and economists are very familiar with business cycles with most assuming that slumps erupt as: 1.) A natural consequence of capitalism, 2.) An act of God, 3.) Or as a result of Fed driven high interest rates. That is to say, the Fed did not engage in enough monetary debasement, becomes the most common complaint by Wall Street pundits and politicians.

2001 Ron Paul 13:9
But today’s economy is unlike anything the world has ever known. The world economy is more integrated than ever before. Indeed, the effort by international agencies to expand world trade has had results- some good. Labor costs have been held in check, industrial producers have moved to less regulated, low cost, and low tax countries while world mobility has aided these trends with all being helped with advances in computer technology.

2001 Ron Paul 13:10
But the artificial nature of today’s world trade and finance being systematically managed by the IMF, the World Bank and WTO, and driven by a worldwide fiat monetary system, has produced imbalances that have already prompted many sudden adjustments. There have been eight major crisis in the past six years requiring a worldwide effort, led by the Fed, to keep the system afloat, all being done with more monetary inflation and bailouts.

2001 Ron Paul 13:11
The lynch pin to the outstanding growth of the 1990s has been the US dollar. Although it too is totally fiat, its special status has permitted a bigger bonus to the United States while it has been used to prop up other world economies. The gift bequeathed to us by owning the world reserve currency, allows us to create dollars at will- and Alan Greenspan has not hesitated to accommodate everyone despite his reputation as an inflation fighter. This has dramatically raised our standard of living, and significantly contributed to the new era psychology that has been welcomed by so many naive enough to believe that perpetual prosperity had arrived and the bills would never have to be paid.

2001 Ron Paul 13:12
One day it will become known that technological advances and improvements in productivity also have a downside. This technology hid the ill effects of the monetary mischief the Fed had enthusiastically engaged in over the past decade. Technological improvements, while keeping the CPI and the PPI prices in check, led many, including Greenspan, to victoriously declare that no inflation existed and that a new era had indeed arrived. Finally, it’s declared that the day has arrived that printing money is equivalent to producing wealth and without a downside. Counterfeiting works!

2001 Ron Paul 13:13
But the excess credit created by the Fed found its way into the stock market- especially the NASDAQ, and was ignored. This set the stage for the stock market collapse, now ongoing. Likewise ignored has been the excess capacity, mal-investment, and debt that permeates the world economy.

2001 Ron Paul 13:14
Could we indeed be facing a truly New Era, but one unanticipated by all the authorities and one much more dangerous?

2001 Ron Paul 13:15
The collapse of the Soviet system and the emergence of United States military and economic preeminence, throughout the world, have permitted the dollar-driven financial bubble to last longer than anticipated. But instead of a glorious New Era, as promised, we ended up with a huge financial bubble and an artificially integrated world economy dominated by an unstable dollar. But instead of a single commodity currency driving a healthy world economy, we have an economy that has numerous imbalances generated by the US dollar, unsustainable trade agreements and total instability in the currency markets.

2001 Ron Paul 13:16
Sure we have enjoyed cheap imports and they have raised our standard of living and our foreign debt. We have on the short run benefited from our trade and current account deficits since the world has been only too eager to gobble up our inflated dollars and loan them back to us. But soon the countries of the world will decide that enough is enough and they will recognize the bad deal it is for them to continue to accept our dollars. The mal-investment, already becoming apparent, will prompt even more radical adjustments in all markets.

2001 Ron Paul 13:17
There are many countries only too anxious to get back at the United States for our military and economic aggressiveness, and some unknown economic or military event will one day knock us off our pedestal and a dangerous New Era will be upon us, instead of the golden one dreamed about.

2001 Ron Paul 13:18
For thirty years the world has operated on a pure fiat monetary system and all the ill effects of such a system are now becoming apparent. Current adjustments will be different than all other previous currency adjustments, which were local or regional. This one is worldwide and may well be the biggest economic event in modern history.

2001 Ron Paul 13:19
It’s reasonable to assume a worldwide slump will ensue as a result of the worldwide monetary mischief our authorities have engaged in the past 30 years. Never before has the world gone so long without money having some tangible value attached to it. Trust in politicians and Central Bankers may have been a benefit in the inflationary part of the cycle but this trust will quickly dissipate in the corrected phase. Monetary heroes can quickly become villains as the price is paid for previous excesses and extravagance.

2001 Ron Paul 13:20
However, hope springs eternal, so no effort will soon be made to restore sound money. A giant worldwide slump will merely prompt massive monetary inflation and deficit financing. The Congress and the American people should anticipate this will happen even though it should not.

2001 Ron Paul 13:21
Conditions today could easily lead to rampant price inflation as the dollar depreciates. Trade chaos, already apparent, considering the number of complaints pending before the WTO, will surely worsen, leading to a greater cry for protectionism and militant nationalism which will then jeopardize international trade even more.

2001 Ron Paul 13:22
The ultimate solution will only come with the rejection of fiat money worldwide, and a restoration of commodity money. Commodity money if voluntarily and universally accepted could give us a single world currency requiring no money managers, no manipulators orchestrating a man-made business cycle with rampant price inflation. Real free trade without barriers or tariffs and a single sound currency is the best way to achieve international peace and prosperity.

2001 Ron Paul 13:23
When that day comes we will have a true New Era, unlike the fictitious New Era of Greenspan’s dreams and certainly opposite of the dangerous New Era that stares us in the face as the world fiat monetary system falters.

2001 Ron Paul Chapter 14

http://www.house.gov/paul/congrec/congrec2001/cr031501.htm
March 15, 2001
The Medical Privacy Protection Resolution
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, March 15, 2001

2001 Ron Paul Chapter 15

http://www.house.gov/paul/congrec/congrec2001/cr032001.htm
March 20, 2001
Congressman Paul’s Statement on Dietary Supplement Regulation and Research

2001 Ron Paul 15:1
Joint Statement from Congressman Ron Paul and Peter DeFazio (D-OR) submitted to the House Committee on Government Reform: “Six Years After the Enactment of DSHEA: The Status of National and International Dietary Supplement Regulation and Research”

2001 Ron Paul 15:2
Mr. Chairman, we appreciate the opportunity to submit comments regarding the need to protect consumers from intrusive regulations which interfere with the availability of dietary supplements. Today’s hearing is just the latest example of the leadership you have shown on this important issue.

 2001 Ron Paul 15:3
Over the past decade the American people have made it clear that they do not want the federal government to interfere with their access to dietary supplements. In 1994, Congress responded to the American people’s desire for greater access to the truth about the benefits of dietary supplements by passing the Dietary Supplements and Health and Education Act of 1994 (DSHEA), which liberalized the rules regarding the regulation of dietary supplements. Congressional offices received a record number of comments in favor of DSHEA.

2001 Ron Paul 15:4
Despite DSHEA, officials of the Food and Drug Administration (FDA) continued to attempt to enforce regulations aimed at keeping the American public in the dark about the benefits of dietary supplements. However, in the case of Pearson v. Shalala, 154 F.3d 650 (DC Cir. 1999), reh’g denied en banc, 172 F.3d 72 (DC Cir. 1999) , the United States Court of Appeals for the DC Circuit Court reaffirmed consumers’ first amendment right to learn about how using dietary supplements can improve their health without unnecessary interference from the FDA. The FDA has been forced to revise its regulations in order to comply with Pearson. However, members of Congress have had to intervene with the FDA on several occasions to ensure that they followed the court’s order. Clearly Congress must continue to monitor the FDA’s action in this area.

 2001 Ron Paul 15:5
The freedom of consumers to use, or even obtain truthful information about, dietary supplements could also be threatened by the United States participation in the Codex Alimentarius Commission (Codex). Codex is a part of the Food and Agriculture Organization of the United Nations and the World Health Organization Food Standard Program operating under the authority of the Sanitary Phytosanitary Agreement and the Technical Barriers to Trade Agreement.

 2001 Ron Paul 15:6
Codex is the vehicle through which the World Trade Organization (WTO) is working to “harmonize” (e.g. conform) food and safety regulations of WTO member countries. Codex is currently creating a guideline on the proper regulations for dietary supplements with the participation of the Food and Drug Administration (FDA). We are concerned that the end result of this process will force the United States to adopt the same strict regulations of dietary supplements common in European countries such as Germany, where consumers’ cannot even examine a bottle of dietary supplements without a pharmacists permission. By participating in this process, the FDA is ignoring the will of Congress as expressed in DSHEA and in the FDA Modernization Act of 1997, which expressly forbid the FDA from participating in the harmonization process, as well as the will of the American people.

 2001 Ron Paul 15:7
While Codex has no direct authority to force Americans to adopt stringent regulations of dietary supplements, we are concerned that the United States may be forced to adopt Codex standards as a result of the United States’ status as a member of the WTO. According to an August 199 report of the Congressional Research Service, “As a member of the WTO, the United States does commit to act in accordance with the rules of the multilateral body. It [the US] is legally obligated to ensure national laws do not conflict with WTO rules.” Thus, Congress may have a legal obligation to again change American laws and regulations to conform with WTO rules!

2001 Ron Paul 15:8
If Congress were to refuse to “harmonize” US laws according to strict Codex/WTO guidelines, a WTO “dispute resolution panel” could find that the United States is engaging in unfair trade because of our failure to “harmonize” our regulations with the rest of the world. In any such trade dispute, the scales are tipped in favor of countries using the Codex standards because of WTO rules presuming that a nation who has adopted Codex has not erected an unfair trade barrier. Therefore, in a dispute with a country that has adopted the Codex standards it is highly probable that America would lose and be subject to heavy sanctions unless Congress harmonized our laws with the other WTO countries. Harmonization may be beneficial for the large corporations and international bureaucrats that control the WTO but it would be a disaster for American consumers of dietary supplements!

2001 Ron Paul 15:9
In conclusion, we once again thank Chairman Burton for holding this hearing and for all his efforts to protect the freedom of American dietary supplement customers and for the opportunity to express our concerns regarding the threat to American consumers posed by the WTO and the Codex Alimentarius process. We also express our hope that Congress will act to protect the freedom of American consumers from overregulation of dietary supplements whether imposed by the FDA or through the back door by an international organization such as the WTO.




2001 Ron Paul Chapter 16

http://www.house.gov/paul/congrec/congrec2001/cr042401.htm
April 24, 2001
Free Trade
FREE TRADE — HON. RON PAUL (Extensions of Remarks - April 24, 2001)


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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, April 24, 2001

2001 Ron Paul Chapter 17

http://www.house.gov/paul/congrec/congrec2001/cr042501.htm
April 25, 2001
A New China Policy


2001 Ron Paul 17:1
President Bush deserves much credit for the handling of the spy plane crisis. However, he has received significant criticism from some of his own political supporters for saying he was “very” sorry for the incident. This seems a “very” small price to pay for the safe return of 24 American military personnel. Trade with China though should be credited for helping to resolve this crisis. President Bush, in the diplomatic handling of this event, avoided overly strong language and military threats, which would have done nothing to save the lives of these 24 Americans.

2001 Ron Paul 17:2
This confrontation, however, provides an excellent opportunity for us to reevaluate our policy toward China and other nations. Although trade with China, for economic reasons, encouraged both America and China to work for a resolution of the spy plane crisis, our trading status with China should be reconsidered. What today is called free trade is not exactly that. Although we engage in trade with China, it is subsidized to the tune of many billions of dollars through the Export/Import Bank- the most of any country in the world.

2001 Ron Paul 17:3
We also have been careless over the last several years in allowing our military secrets to find their way into the hands of the Chinese government. At the same time we subsidize trade with China, including sensitive military technology, we also build up the Taiwanese military while continuing to patrol the Chinese border with our spy planes. It’s a risky, inconsistent policy.

2001 Ron Paul 17:4
The question we must ask ourselves is how would we react if we had Chinese airplanes flying up and down our coast and occupying the air space of the Gulf of Mexico?? We must realize that China is a long way from the US and is not capable, nor is she showing any signs, of launching an attack on any sovereign territory of the United States.

2001 Ron Paul 17:5
Throughout all of China’s history she has never pursued military adventurism far from her own borders. That is something that we cannot say about our own policy. China traditionally has only fought for secure borders predominantly with India, Russia, Japan, and in Korea against the United States, and that was only when our troops approached the Yaloo River.

2001 Ron Paul 17:6
It should not go unnoticed that there was no vocal support from any of our allies for our spy missions along the Chinese coast. None of our allies bothered to condemn the action of the Chinese military aircraft, although it technically was the cause of the accident. Don’t forget that when a Russian aircraft landed in Japan in 1976, it was only after many months we returned the plane to Russia — in crates.

2001 Ron Paul 17:7
Although there is no doubt that we technically have legal grounds for making these flights, the question really is whether or not it is wise to do so or necessary for our national security. Actually a strong case can be made that our national security is more threatened by our patrolling the Chinese coast than if we avoided such flights altogether. After a half a century it’s time to reassess the need for such flights. Satellite technology today gives us the ability to watch and to listen to almost everyone on earth. If there is a precise need for this type of surveillance for the benefit of Taiwan, then the Taiwanese ought to be involved in this activity, not American military personnel. We should not feel so insecure that we need to threaten and intimidate other countries in order to achieve some vague psychological reassurance that we’re still the top military power in the world. This is unnecessary and may well represent a weakness rather than strength.

2001 Ron Paul 17:8
The Taiwan Relations Act essentially promises that we will defend Taiwan at all costs and should be reevaluated. Morally and constitutionally a treaty cannot be used to commit us to war at some future date. One generation cannot declare war for another. Making an open-ended commitment to go to war, promising troops, money and weapons, is not permitted by the Constitution.

2001 Ron Paul 17:9
It is clear that war can only be declared by a Congress currently in office. Declaring war cannot be circumvented by a treaty or agreement committing us to war at some future date. If a previous treaty can commit future generations to war, the House of Representatives, the body closest to the people, would never have a say in the most important issue of declaring war.

2001 Ron Paul 17:10
We must continue to believe and be confident that trading with China is beneficial to America. Trade between Taiwan and China already exists and should be encouraged. It’s a fact that trade did help to resolve this current crisis without a military confrontation.

2001 Ron Paul 17:11
Concern about our negative trade balance with the Chinese is irrelevant. Balance of payments are always in balance. For every dollar we spend in China those dollars must come back to America. Maybe not buying American goods, as some would like, but they do come back and they serve to finance our current account deficit.

2001 Ron Paul 17:12
Free trade, it should be argued, is beneficial even when done unilaterally, providing a benefit to our consumers. But we should take this opportunity to point out clearly and forcefully the foolishness of providing subsidies to the Chinese through such vehicles as the Export/Import Bank. We should be adamantly opposed to sending military technology to such a nation, or to any nation for that matter.

2001 Ron Paul 17:13
It is interesting to note that recent reports reveal that missiles, coming from Israel and financed by American foreign aid, were seen on the fighter plane that caused the collision. It should be equally clear that arming the enemies of our trading partners doesn’t make a whole lot of sense either. For American taxpayers to continue to finance the weaponry of Taiwan, and to maintain an open commitment to send our troops if the border dispute between Taiwan and China erupts into violence, is foolhardy and risky.

2001 Ron Paul 17:14
Don’t forget that President Eisenhower once warned that there always seems to be a need for a “monster to slay” in order to keep the military industries busy and profitable. To continue the weapons buildup, something we are always engaged in around the world, requires excuses for such expenditures- some of these are planned, some contrived, and some accidental.

2001 Ron Paul 17:15
When we follow only a military approach without trading in our dealings with foreign nations, and in particular with China, we end up at war, such as we did in the Korean War. Today, we are following a policy where we have less military confrontation with the Chinese and more trade, so relations are much better. A crisis like we have just gone through is more likely to be peacefully resolved to the benefit of both sides. But what we need is even less military involvement, with no military technology going to China and no military weapons going to Taiwan. We have a precise interest in increasing true free trade; that is, trade that is not subsidized nor managed by some world government organization like the WTO. Maintaining peace would then be much easier.

2001 Ron Paul 17:16
We cannot deny that China still has many internal moral, economic and political problems that should be resolved. But so do we. Their internal problems are their own. We cannot impose our views on them in dealing with these issues, but we should be confident enough that engaging in free trade with them and setting a good example are the best ways for us to influence them in coming to grips with their problems. We have enough of our own imperfections in this country in dealing with civil liberties, and we ought not to pretend that we are saintly enough to impose our will on others in dealing with their problems. Needless to say we don’t have the legal authority to do so either.

2001 Ron Paul 17:17
During the Cuban missile crisis a resolution was achieved under very dangerous circumstances. Quietly, President Kennedy had agreed to remove the missiles from Turkey that were pointed at the Soviets, making the point that American missiles on the Soviet borders was not unlike the Soviets missiles on the American borders. A few months later, quietly, the United States removed these missiles, and no one suffered. The Cold War was eventually won by the United States, but our national security was not threatened by the removal of those missiles.

2001 Ron Paul 17:18
It could be argued that the fact that our missiles were in Turkey and pointed at the Soviets was more of a threat to our national security because that motivated the Soviets to put their missiles in Cuba. It would do no harm to our national security for us to quietly, in time, stop the potentially dangerous and unnecessary spy missions that we have pursued for over 50 years along the Chinese border.

2001 Ron Paul 17:19
James Bamford recently wrote in The New York Times of an episode that occurred in 1956 when Eisenhower was president. On a similar spy mission off the Chinese coast the Chinese Air Force shot down one of our planes, killing 16 American crewmen. In commenting on the incident President Eisenhower said, “We seem to be conducting something that we cannot control very well. If planes were flying 20 to 50 miles from our shores we would be very likely to shoot them down if they came in closer, whether through error or not.”

2001 Ron Paul 17:20
We have been pursuing these missions near China for over 50 years. It’s time to reconsider the wisdom and the necessity of such missions, especially since we are now engaged in trade with this nation.

2001 Ron Paul 17:21
Bellicose and jingoistic demands for retaliation and retribution are dangerous, and indeed are a greater threat to our national security than relying on satellite technology for gathering the information that we might need. A policy of peaceful, non-subsidized trade with China would go a long way to promoting friendly and secure relations with the Chinese people. By not building up the military arsenal of the Taiwanese, Taiwan will be forced to pursue their trade policies and investments with China, leading to the day where the conflict between these two powers can be resolved peacefully.

2001 Ron Paul 17:22
Today, it looks like there’s a much better chance of North and South Korea getting together and solving their dispute than was the case in the 1950s, when we sent hundreds of thousands of troops and millions of bombs to resolve the conflict, which was unsuccessful.

2001 Ron Paul 17:23
We should have more confidence that peaceful trade is a much stronger weapon than all the military force that we can provide. That same argument can be made for our dealings with Vietnam today. We did not win with weapons of war in the 1960s, yet we are now much more engaged in a peaceful trade with the people with Vietnam. Our willingness over the past hundred years to resort to weapons to impose our will on others has generally caused a resentment of America rather than respect.

2001 Ron Paul 17:24
It is now time to reassess our entire foreign policy of military worldwide intervention. Staying neutral in world conflicts while showing a willingness to trade with all nations anxious to trade with us will do more to serve the cause of world peace than all the unnecessary and provocative spy missions we pursue around the globe.

2001 Ron Paul Chapter 18

http://www.house.gov/paul/congrec/congrec2001/cr042601.htm
April 26, 2001
INTRODUCTION OF THE AGRICULTURE EDUCATION FREEDOM ACT — HON. RON PAUL
(Extensions of Remarks - April 26, 2001)


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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, April 26, 2001

2001 Ron Paul Chapter 19

http://www.house.gov/paul/congrec/congrec2001/cr042601B.htm
April 26, 2001
Repeal of the Selective Service Act
INTRODUCTION OF LEGISLATION RELATIVE TO THE REPEAL OF THE SELECTIVE SERVICE ACT AND RELATED PORTIONS OF THE US CODE (APRIL 26, 2001) — HON. RON PAUL (Extensions of Remarks - April 26, 2001)


[Page: E647] GPO’s PDF

2001 Ron Paul 19:1 
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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, April 26, 2001

2001 Ron Paul Chapter 20

http://www.house.gov/paul/congrec/congrec2001/cr042601C.htm
April 26, 2001
Statement on the Unborn Victims of Violence Act


2001 Ron Paul 20:1
   Mr. PAUL. Mr. Speaker, while it is the independent duty of each branch of the Federal Government to act Constitutionally, Congress will likely continue to ignore not only its Constitutional limits but earlier criticisms from Chief Justice William H. Rehnquist, as well.

2001 Ron Paul 20:2
   The Unborn Victims of Violence Act of 2001, H.R. 503, would amend title 18, United States Code, for the laudable goal of protecting unborn children from assault and murder. However, by expanding the class of victims to which unconstitutional (but already-existing) Federal murder and assault statutes apply, the Federal Government moves yet another step closer to a national police state.

2001 Ron Paul 20:3
   Of course, it is much easier to ride the current wave of federalizing every human misdeed in the name of saving the world from some evil than to uphold a Constitutional oath which prescribes a procedural structure by which the nation is protected from what is perhaps the worst evil, totalitarianism. Who, after all, wants to be amongst those members of Congress who are portrayed as soft on violent crimes initiated against the unborn ?

2001 Ron Paul 20:4
   Nevertheless, our Federal Government is, constitutionally, a government of limited powers. Article one, section eight, enumerates the legislative areas for which the U.S. Congress is allowed to act or enact legislation. For every other issue, the Federal Government lacks any authority or consent of the governed and only the State governments, their designees, or the people in their private market actions enjoy such rights to governance. The tenth amendment is brutally clear in stating “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Our Nation’s history makes clear that the U.S. Constitution is a document intended to limit the power of central government. No serious reading of historical events surrounding the creation of the Constitution could reasonably portray it differently.

2001 Ron Paul 20:5
   However, Congress does more damage than just expanding the class to whom Federal murder and assault statutes apply — it further entrenches and seemingly concurs with the Roe v. Wade decision (the Court’s intrusion into rights of States and their previous attempts to protect by criminal statute the unborn’s right not to be aggressed against). By specifically exempting from prosecution both abortionists and the mothers of the unborn (as is the case with this legislation), Congress appears to say that protection of the unborn child is not only a Federal matter but conditioned upon motive. In fact, the Judiciary Committee in marking up the bill, took an odd legal turn by making the assault on the unborn a strict liability offense insofar as the bill does not even require knowledge on the part of the aggressor that the unborn child exists. Murder statutes and common law murder require intent to kill (which implies knowledge) on the part of the aggressor. Here, however, we have the odd legal philosophy that an abortionist with full knowledge of his terminal act is not subject to prosecution while an aggressor acting without knowledge of the child’s existence is subject to nearly the full penalty of the law. (With respect to only the fetus, the bill exempts the murderer from the death sentence — yet another diminution of the unborn’s personhood status and clearly a violation of the equal protection clause.) It is

2001 Ron Paul 20:6
   becoming more and more difficult for congress and the courts to pass the smell test as government simultaneously treats the unborn as a person in some instances and as a non-person in others.

2001 Ron Paul 20:7
   In his first formal complaint to Congress on behalf of the federal Judiciary, Chief Justice William H. Rehnquist said “the trend to federalize crimes that have traditionally been handled in state courts . . . threatens to change entirely the nature of our Federal system.” Rehnquist further criticized Congress for yielding to the political pressure to “appear responsive to every highly publicized societal ill or sensational crime.”

2001 Ron Paul 20:8
   Perhaps, equally dangerous is the loss of another Constitutional protection which comes with the passage of more and more federal criminal legislation. Constitutionally, there are only three Federal crimes. These are treason against the United States, piracy on the high seas, and counterfeiting (and, because the constitution was amended to allow it, for a short period of history, the manufacture, sale, or transport of alcohol was concurrently a Federal and State crime). “Concurrent” jurisdiction crimes, such as alcohol prohibition in the past and federalization of murder today, erode the


2001 Ron Paul 20:9
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right of citizens to be free of double jeopardy. The fifth amendment to the U.S. Constitution specifies that no “person be subject for the same offense to be twice put in jeopardy of life or limb . . .” In other words, no person shall be tried twice for the same offense. However, in United States v. Lanza, the high court in 1922 sustained a ruling that being tried by both the Federal Government and a State government for the same offense did not offend the doctrine of double jeopardy. One danger of unconstitutionally expanding the Federal criminal justice code is that it seriously increases the danger that one will be subject to being tried twice for the same offense. Despite the various pleas for federal correction of societal wrongs, a national police force is neither prudent nor constitutional.

2001 Ron Paul 20:10
   Occasionally the argument is put forth that States may be less effective than a centralized Federal Government in dealing with those who leave one State jurisdiction for another. Fortunately, the Constitution provides for the procedural means for preserving the integrity of State sovereignty over those issues delegated to it via the tenth amendment. The privilege and immunities clause as well as full faith and credit clause allow States to exact judgments from those who violate their State laws. The Constitution even allows the Federal Government to legislatively preserve the procedural mechanisms which allow States to enforce their substantive laws without the Federal Government imposing its substantive edicts on the States. Article IV, Section 2, Clause 2 makes provision for the rendition of fugitives from one State to another. While not self-enacting, in 1783 Congress passed an act which did exactly this. There is, of course, a cost imposed upon States in working with one another rather than relying on a national, unified police force. At the same time, there is a greater cost to centralization of police power.

2001 Ron Paul 20:11
   It is important to be reminded of the benefits of federalism as well as the cost. There are sound reasons to maintain a system of smaller, independent jurisdictions — it is called competition and, yes, governments must, for the sake of the citizenry, be allowed to compete. We have obsessed so much over the notion of “competition” in this country we harangue someone like Bill Gates when, by offering superior products to every other similarly-situated entity, he becomes the dominant provider of certain computer products. Rather than allow someone who serves to provide value as made obvious by their voluntary exchanges in the free market, we lambaste efficiency and economies of scale in the private marketplace. Curiously, at the same time, we further centralize government, the ultimate monopoly and one empowered by force rather than voluntary exchange.

2001 Ron Paul 20:12
   When small governments becomes too oppressive with their criminal laws, citizens can vote with their feet to a “competing” jurisdiction. If, for example, one does not want to be forced to pay taxes to prevent a cancer patient from using medicinal marijuana to provide relief from pain and nausea, that person can move to Arizona. If one wants to bet on a football game without the threat of government intervention, that person can live in Nevada. As government becomes more and more centralized, it becomes much more difficult to vote with one’s feet to escape the relatively more oppressive governments. Governmental units must remain small with ample opportunity for citizen mobility both to efficient governments and away from those which tend to be oppressive. Centralization of criminal law makes such mobility less and less practical.

2001 Ron Paul 20:13
   Protection of life (born or unborn ) against initiations of violence is of vital importance. So vitally important, in fact, it must be left to the States’ criminal justice systems. We have seen what a legal, constitutional, and philosophical mess results from attempts to federalize such an issue. Numerous States have adequately protected the unborn against assault and murder and done so prior to the Federal Government’s unconstitutional sanctioning of violence in the Roe v. Wade decision. Unfortunately, H.R. 503 ignores the danger of further federalizing that which is properly reserved to State governments and, in so doing, throws legal philosophy, the Constitution, the Bill of Rights, and the insights of Chief Justice Rehnquist out with the baby and the bathwater.

2001 Ron Paul Chapter 21

http://www.house.gov/paul/congrec/congrec2001/cr051001.htm
May 10, 2001
AMERICA NOT GETTING FAIR SHAKE FROM UNITED NATIONS —
(House of Representatives - May 10, 2001) 
[Page: H2137] 

 
GPO’s PDF


  
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2001 Ron Paul 21:1
   The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Texas (Mr. PAUL ) is recognized for 5 minutes.

2001 Ron Paul 21:2
   Mr. PAUL. Mr. Speaker, today, as we are getting ready to adjourn, we have left the foreign relations authorization bill unfinished. I serve on the Committee on International Relations, and I was anxious to present several amendments in dealing with especially the United Nations. Unfortunately, those amendments were not permitted.

2001 Ron Paul 21:3
   The amendments that we are dealing with I see as being very small token efforts to improve the bill, but not really dealing with the essence of whether or not we should be in the United Nations or further funding the peacekeeping missions and doing many of the things that I believe sincerely should not be engaged in if we followed the Constitution, and many Americans agree with this.

2001 Ron Paul 21:4
   I think we are at a point now where a growing number of Americans feel like we are not getting a fair shake from the United Nations. I have been preaching this message for quite a few years, but I believe the United Nations itself is starting to make my point.

2001 Ron Paul 21:5
   Just recently, in the last week, the United States was kicked off the Human Rights Commission, as well as the International Narcotics Control Board. This is an affront to our dignity and ought to point out to us that, although we pay the largest amount of money for peacekeeping missions and the largest amount of dues, here it is that, because there is disagreement, we are humiliated by being kicked off these commissions.

2001 Ron Paul 21:6
   I do not see the benefits of belonging to the United Nations. I see too many disadvantages. If it were just a discussion group and trying to bring people together, that would be one thing; but we have gone to an extreme. This is an extreme position, as far as I am concerned, to belong to the United Nations and deliver so much of our sovereignty to the United Nations today.

2001 Ron Paul 21:7
   Essentially since World War II, we have gone to war under U.N. resolutions. No longer does the President come to the Congress and ask for a declaration of war. U.N. resolutions are passed, and we send our troops throughout the world fighting and being engaged in war. That is not the way it is supposed to be. The Constitution is very clear on when we should be involved in war.

2001 Ron Paul 21:8
   The conditions are not improving at all. They are asking for more and more funding. At the same time we sacrifice more and more of our sovereignty. On occasion we will stand up and say no, we do not want to participate in the Kyoto treaty or the International Criminal Court, and that is good. But the whole idea of this world government under the United Nations I think is something we should really challenge.

2001 Ron Paul 21:9
   Just January of this past year, it was noted that the United Nations proposed for the first time, although not ready to be passed, that we have an international tax placed on currency transactions to raise billions of dollars to be spent for international activities. Now, you say well, that is probably just a proposal and it will never happen. But even today, in Bosnia, the United Nations peacekeepers over there are tax collectors. There are not enough revenues being collected for certain governments, and the UN peacekeepers are


2001 Ron Paul 21:10
[Page: H2138] GPO’s PDF
there collecting taxes. So it is already happening that we are involved in tax collecting.

2001 Ron Paul 21:11
   I think that is the wrong way to go, and certainly we should be considering slashing these funds. I would have liked to have seen the removal of all the funds for peacekeeping missions. There is no national sovereignty reasons why we should put American troops under U.N. command in areas like Bosnia. I think that is the wrong way to go, I do not think the American people support this, and that we should reconsider our position and our relationship in the United Nations.

2001 Ron Paul 21:12
   There are hundreds of millions of dollars here for population control around the world. Some would say, well, as long as we write some little sentence in here and say “please do not use any of the money for abortion,” that will alleviate their conscience about sending tax dollars over to do abortions in places like China and other places in the world. Well, that does not work, because all funds are fungible. Funds can be shifted around. If we send the money, it can be used. If we specifically say “do not use them,” they can just shift the funds around, so I see that as not being a very good idea.

2001 Ron Paul 21:13
   I would like to strike all the funds for population control. If we feel compelled to help other countries and teach them about birth control, it should be done voluntarily and through missionary work or some other way, but not to tax the American people and force them to subsidize events like abortion.

2001 Ron Paul Chapter 22

http://www.house.gov/paul/congrec/congrec2001/cr052201.htm
May 22, 2001

Hearing before the House Ways and Means Social Security Subcommittee
Protecting Privacy and Preventing Misuse of Social Security Numbers


2001 Ron Paul 22:1
 

2001 Ron Paul 22:2
I wish to thank the subcommittee on Social Security of the Ways and Means Committee for holding this hearing on the misuse of the Social Security number. The transformation of the Social Security number into a de facto uniform identifier is a subject of increasing concern to the American people. This is, in large part, because the use of the Social Security number as a standard identifier facilitates the crime of identity theft. Today, all an unscrupulous person needs to do is obtain someone’s Social Security number in order to access that person’s bank accounts, credit cards, and other financial assets. Many Americans have lost their life savings and have had their credit destroyed as a result of identity theft.

2001 Ron Paul 22:3
The responsibility for the misuse of the Social Security number and the corresponding vulnerability of the American people to identity crimes lies squarely with the Congress. Since the creation of the Social Security number, Congress has authorized over 40 uses of the Social Security number. Thanks to Congress, today no American can get a job, open a bank account, get a professional license, or even get a drivers’ license without presenting their Social Security number. So widespread has the use of the Social Security number become that a member of my staff had to produce a Social Security number in order to get a fishing license!

2001 Ron Paul 22:4
Because it was Congress which transformed the Social Security number into a national identifier, Congress has a moral responsibility to address this problem. In order to protect the American people from government-mandated uniform identifiers which facilitate identity crimes, I have introduced the Identity Theft Prevention Act (HR 220). The major provision of the Identity Theft Prevention Act halts the practice of using the Social Security number as an identifier by requiring the Social Security Administration to issue all Americans new Social Security numbers within five years after the enactment of the bill. These new numbers will be the sole legal property of the recipient and the Social Security Administration shall be forbidden to divulge the numbers for any purposes not related to the Social Security program. Social Security numbers issued before implementation of this bill shall no longer be considered valid federal identifiers. Of course, the Social Security Administration shall be able to use an individual’s original Social Security number to ensure efficient transition of the Social Security system.

2001 Ron Paul 22:5
This act also forbids the federal government from creating national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions between American citizens, as well as repealing those sections of the Health Insurance Portability and Accountability Act of 1996 that require the Department of Health and Human Services to establish a uniform standard health identifier. By putting an end to government-mandated uniform IDs, the Identity Theft Prevention Act will prevent millions of Americans from having their liberty, property and privacy violated by private-and-public sector criminals.

2001 Ron Paul 22:6
In addition to forbidding the federal government from creating national identifiers, this legislation forbids the federal government from blackmailing states into adopting uniform standard identifiers by withholding federal funds. One of the most onerous practices of Congress is the use of federal funds illegitimately taken from the American people to bribe states into obeying federal dictates.

2001 Ron Paul 22:7
Many of our colleagues will claim that the federal government needs these powers to protect against fraud or some other criminal activities. However, monitoring the transactions of every American in order to catch those few who are involved in some sort of illegal activity turns one of the great bulwarks of our liberty, the presumption of innocence, on its head. The federal government has no right to treat all Americans as criminals by spying on their relationship with their doctors, employers, or bankers. In fact, criminal law enforcement is reserved to the state and local governments by the Constitution’s Tenth Amendment.

2001 Ron Paul 22:8
Other members of Congress will claim that the federal government needs the power to monitor Americans in order to allow the government to operate more efficiently. I would remind my colleagues that in a constitutional republic the people are never asked to sacrifice their liberties to make the job of government officials a little bit easier. We are here to protect the freedom of the American people, not to make privacy invasion more efficient.

2001 Ron Paul 22:9
Mr. Chairman, while I do not question the sincerity of those members who suggest that Congress can ensure citizens’ rights are protected through legislation restricting access to personal information, the only effective privacy protection is to forbid the federal government from mandating national identifiers. Legislative “privacy protections” are inadequate to protect the liberty of Americans for several reasons. First, it is simply common sense that repealing those federal laws that promote identity theft is a more effective in protecting the public than expanding the power of the federal police force. Federal punishment of identity thieves provides old comfort to those who have suffered financial losses and the destruction of their good reputation as a result of identity theft.

2001 Ron Paul 22:10
Federal laws are not only ineffective in stopping private criminals, they have not even stopped unscrupulous government officials from accessing personal information. Did laws purporting to restrict the use of personal information stop the well-publicized violation of privacy by IRS officials or the FBI abuses by the Clinton and Nixon administrations? !

2001 Ron Paul 22:11
The primary reason why any action short of the repeal of laws authorizing privacy violation is insufficient is because the federal government lacks constitutional authority to force citizens to adopt a universal identifier for health care, employment, or any other reason. Any federal action that oversteps constitutional limitations violates liberty because it ratifies the principle that the federal government, not the Constitution, is the ultimate judge of its own jurisdiction over the people. The only effective protection of the rights of citizens is for Congress to follow Thomas Jefferson’s advice and “bind (the federal government) down with the chains of the Constitution.”

2001 Ron Paul 22:12
Mr. Chairman, those members who are unpersuaded by the moral and constitutional reasons for embracing the Identity Theft Prevention Act should consider the overwhelming opposition of the American people toward national identifiers. The overwhelming public opposition to the various “Know-Your-Customer” schemes, the attempt to turn drivers’ licenses into National ID cards, HHS’s misnamed “medical privacy” proposal, as well as the numerous complaints over the ever-growing uses of the Social Security number show that American people want Congress to stop invading their privacy. Congress risks provoking a voter backlash if we fail to halt the growth of the surveillance state.

2001 Ron Paul 22:13
In conclusion, Mr. Chairman, I once again thank you and the other members of the subcommittee for holding a hearing on this important issue. I hope this hearing would lead to serious Congressional action to end to the federal government’s unconstitutional use of national identifiers which facilitate identity theft by passing Hr 220, the Identify Theft Prevention Act.

2001 Ron Paul Chapter 23

http://www.house.gov/paul/congrec/congrec2001/cr052301.htm
May 23, 2001
Statement on the Congressional Education Plan


2001 Ron Paul 23:1
Mr. PAUL. Mr. Chairman, thirty-six years ago Congress blatantly disregarded all constitutional limitations on its power over K-12 education by passing the Elementary and Secondary Education Act (ESEA). This act of massive federal involvement in education was sold to the American people with promises that federal bureaucrats had it within their power to usher in a golden age of education. Yet, instead of the promised nirvana, federal control over education contributed to a decline in education quality. Congress has periodically responded to the American people’s concerns over education by embracing education “reforms,” which it promises are the silver bullet to fixing American schools. “Trust us,” proponents of new federal edcation programs say, we have learned from the mistakes of the past and all we need are a few billion more dollars and some new federal programs and we will produce the educational utopia in which “all children are above average.” Of course, those reforms only result in increasing the education bureaucracy, reducing parental control, increasing federal expenditures, continuing decline in education and an inevitable round of new “reforms.”

2001 Ron Paul 23:2
   Congress is now considering whether to continue this cycle by passing the national five-year plan contained in H.R. 1, the so-called “No Child Left Behind Act.” A better title for this bill is “No Bureaucrat Left Behind” because, even though it’s proponents claim H.R. 1 restores power over education to states and local communities, this bill represents a massive increase in federal control over education. H.R. 1 contains the word “ensure” 150 times, “require” 477 times, “shall” 1,537 and “shall not” 123 times. These words are usually used to signify federal orders to states and localities. Only in a town where a decrease in the rate of spending increases is considered a cut could a bill laden with federal mandates be considered an increase in local control!

2001 Ron Paul 23:3
   H.R. 1 increases federal control over education through increases in education spending. Because “he who pays the piper calls the tune,” it is inevitable that increased federal expenditures on education will increase federal control. However, Mr. Chairman, as much as I object to the new federal expenditures in H.R. 1, my biggest concern is with the new mandate that states test children and compare the test with a national normed test such as the National Assessment of Education Progress (NAEP). While proponents of this approach claim that the bill respects state autonomy as states’ can draw up their own tests, these claims fail under close observation. First of all, the very act of imposing a testing mandate on states is a violation of states’ and local communities’ authority, protected by the 10th Amendment to the United States Constitution, to control education free from federal interference.

2001 Ron Paul 23:4
   Some will claim that this does not violate states’ control because states are free to not accept federal funds. However, every member here knows that it is the rare state administrator who will decline federal funds to avoid compliance with federal mandates. It is time Congress stopped trying to circumvent the constitutional limitations on its authority by using the people’s own money to bribe them into complying with unconstitutional federal dictates.

2001 Ron Paul 23:5
   Mr. Chairman, H.R. 1 will lead to de facto, if not de jure, national testing. States will inevitably fashion their test to match the “nationally-normed” test so as to relieve their students and

2001 Ron Paul 23:6
   teachers of having to prepare for two different tests. Furthermore, states will feel pressure from employers, colleges, and perhaps even future Congresses to conform their standards with other national tests “for the children’s sake.” After all, what state superintendent wants his state’s top students denied admission to the top colleges, or the best jobs, or even student loans, because their state’s test is considered inferior to the “assessments” used by the other 49 states?

2001 Ron Paul 23:7
   National testing will inevitably lead to a national curriculum as teachers will teach what their students need to know in order to pass their mandated “assessment.” After all, federal


2001 Ron Paul 23:8
[Page: H2418] GPO’s PDF
funding depends on how students perform on these tests! Proponents of this approach dismiss these concerns by saying “there is only one way to read and do math.” Well then what are the battles about phonics versus whole language or new math versus old math about? There are continuing disputes about teaching all subjects as well as how to measure mastery of a subject matter. Once federal mandatory testing is in place however, those arguments will be settled by the beliefs of whatever regime currently holds sway in DC. Mr. Chairman, I would like my colleagues to consider how comfortable they would feel supporting this bill if they knew that in five years proponents of fuzzy math and whole language could be writing the NAEP?

2001 Ron Paul 23:9
   Proponents of H.R. 1 justify the mandatory testing by claiming it holds schools “accountable.” Of course, everyone is in favor of holding schools accountable but accountable to whom? Under this bill, schools remain accountable to federal bureaucrats and those who develop the state tests upon which participating schools performance is judged. Even under the much touted Straight “A”s proposal, schools which fail to live up to their bureaucratically-determined “performance goals” will lose the flexibility granted to them under this act. Federal and state bureaucrats will determine if the schools are to be allowed to participate in the Straight “A”s programs and bureaucrats will judge whether the states are living up to the standards set in the state’s education plan — yet this is the only part of the bill which even attempts to debureaucratize and decentralize education!

2001 Ron Paul 23:10
   Under the United States Constitution, the federal government has no authority to hold states “accountable” for their education performance. In the free society envisioned by the founders, schools are held accountable to parents, not federal bureaucrats. However, the current system of imposing oppressive taxes on America’s families and using those taxes to fund federal education programs denies parental control of education by denying them control over their education dollars.

2001 Ron Paul 23:11
   As a constitutional means to provide parents with the means to hold schools accountable, I have introduced the Family Education Freedom Act (H.R. 368). The Family Education Freedom Act restores parental control over the classroom by providing American parents a tax credit of up to $3,000 for the expenses incurred in sending their child to private, public, parochial, other religious school, or for home schooling their children.

2001 Ron Paul 23:12
   The Family Education Freedom Act returns the fundamental principle of a truly free economy to America’s education system: what the great economist Ludwig von Mises called “consumer sovereignty.” Consumer sovereignty simply means consumers decide who succeeds or fails in the market. Businesses that best satisfy consumer demand will be the most successful. Consumer sovereignty is the means by which the free society maximizes human happiness.

2001 Ron Paul 23:13
   When parents control the education dollar, schools must be responsive to parental demands that their children receive first-class educations, otherwise, parents will find alternative means to educate their children. Furthermore, parents whose children are in public schools may use their credit to improve their schools by purchasing of educational tools such as computers or extracurricular activities such as music programs. Parents of public school students may also wish to use the credit to pay for special services for their children.

2001 Ron Paul 23:14
   According to a recent Manhattan Institute study of the effects of state policies promoting parental control over education, a minimal increase in parental control boosts the average SAT verbal score by 21 points and the student’s SAT math score by 22 points! The Manhattan Institute study also found that increasing parental control of education is the best way to improve student performance on the NAEP tests.

2001 Ron Paul 23:15
   I have also introduced the Education Quality Tax Cut Act (H.R. 369), which provides a $3,000 tax deduction for contributions to K-12 education scholarships as well as for cash or in-kind donations to private or public schools. The Education Quality Tax Cut Act will allow concerned citizens to become actively involved in improving their local public schools as well as help underprivileged children receive the type of education necessary to help them reach their full potential. I ask my colleagues: “Who is better suited to lead the education reform effort: parents and other community leaders or DC-based bureaucrats and politicians?”

2001 Ron Paul 23:16
   If, after the experience of the past thirty years, you believe that federal bureaucrats are better able to meet children’s unique educational needs than parents and communities then vote for H.R. 1. However, if you believe that the failures of the past shows expanding federal control over the classroom is a recipe for leaving every child behind then do not settle for some limited state flexibility in the context of a massive expansion of federal power: Reject H.R. 1 and instead help put education resources back into the hands of parents by supporting my Family Education Freedom Act and Education Improvement Tax Cut Act.

2001 Ron Paul Chapter 24

http://www.house.gov/paul/congrec/congrec2001/cr052301B.htm
May 23, 2001
Letter to HHS Secretary Tommy Thompson Regarding Proposed Medical Privacy Regulation


2001 Ron Paul 24:1
Thank you for your interest in revising the Department of Health and Human Services’ (HHS) medical privacy regulations. I respectfully urge HHS to revise those sections of the bill that reduce medical privacy by allowing the government increased access to medical records.

2001 Ron Paul 24:2
According to a Gallop survey commissioned by the Institute for Health Freedom, 92% of Americans oppose allowing government agencies to have access to medical records without patient consent. The American people are more opposed to government agencies having unfettered access to medical records than they are to any private party, with the exception of financial institutions, having access to their medical history. Yet HHS’s rule increases the power of government agencies to seize medical records without consent!

2001 Ron Paul 24:3
HHS should ensure that the regulation complies with the letter and spirit of the fourth amendment by requiring that law enforcement officials obtain a valid search warrant before seizing private medical records. The requirement that law enforcement officials obtain a warrant from a judge before searching private documents is one of the fundamental protections against abuse of the government’s power to seize an individual’s private documents. While the fourth amendment has been interpreted to allow warrantless searches in emergency situations, it is hard to conceive of a situation where law enforcement officials would be unable to obtain a warrant before electronic medical records would be destroyed.

2001 Ron Paul 24:4
HHS should also eliminate those sections which require physicians to provide the federal government with personal medical records for purposes of monitoring compliance with the rule. HHS should only collect information if the physicians or the federal government has obtained written permission from the patient allowing HHS to obtain their records.

2001 Ron Paul 24:5
HHS should also repeal those sections of the regulations that provide private parties with a right to access private medical records for reasons unrelated to treatment. Particularly offensive are those sections which allow medical researchers to access private records without individual consent. While researchers claim to be able to protect the autonomy of their unwilling subjects, the fact is that allowing third parties to use medical records for research purposes runs the risk of inadvertent identification of personal medical information. I am aware of at least one incident where a man had his identity revealed when his medical records were used without his consent. As a result, many people in his community discovered details of his medical history that he wished to keep private!

2001 Ron Paul 24:6
I am also aware that some will make the argument that there is a “social good” in medical research that outweighs the individual’s right to privacy. As a physician, I certainly recognize the value and importance of medical research. However, as a legislator, I also recognize that because people have a property interest in their medical information, forcing individuals to divulge medical information without their consent runs afoul of the fifth amendment’s taking clause, which was designed to prevent sacrifices of individual liberty and property for the “common good.”

2001 Ron Paul 24:7
In a free society, such as the one envisioned by the drafters of the Constitution, the federal government should never force a citizen to divulge personal information to advance “important social goals.” Rather, it should be up to the individuals, not the government, to determine what social goals are important enough to warrant allowing others access to their personal property, including their personal information. To the extent these regulations sacrifice individual rights in the name of a bureaucratically-determined “common good,” they are incompatible with a constitutional government that respects individual liberty.

2001 Ron Paul 24:8
Finally, Secretary Thompson, if HHS is going to collect private medical records, the medical privacy rule should then explicitly forbid the federal government from permanently storing any medical information on a federally maintained or funded database. Previous experience with federal collection of information demonstrates the need for an explicit ban on creating a database. For example, despite repeated assurances they would not do so, the Bureau of Alcohol Tobacco and Firearms is using their authority to conduct background checks under the Brady Law to compile a database of every gun owner in America!

2001 Ron Paul 24:9
In conclusion, I once again respectfully request that the Department of Health and Human Services amend the medical privacy rule to require a search warrant before government officials may seize medical records. I also request that HHS remove all sections of the rule that give private parties (particularly researchers) a federal right to access medical records without consent for purposes unrelated to treatment. Furthermore, if HHS is going to continue to allow the Federal Government to collect medical information for any reason, HHS must explicitly provide that none of the information collected under the authority given HHS, or any other federal agency, will be stored in a federally maintained or funded database. Thank you for your consideration of my views, which, according to the Gallup poll, are shared by the vast majority of Americans.

2001 Ron Paul Chapter 25

http://www.house.gov/paul/congrec/congrec2001/cr061301.htm
June 13, 2001

2001 Ron Paul 25:1
Statement before the House of Representative regarding intervention in Sudan


2001 Ron Paul 25:2
Mr. Speaker, with HR 2052, the Sudan Peace Act, we embark upon another episode of interventionism, in continuing our illegitimate and ill-advised mission to police the world. It seemingly matters little to this body that it proceeds neither with any constitutional authority nor with the blessings of such historical figures such as Jefferson who, in his first inaugural address, argued for “Peace, commerce and honest friendship with all nations — entangling alliances with none.” Unfortunately, this is not the only bit of history which seemingly is lost on this Congress.

2001 Ron Paul 25:3
Apparently, it is also lost on this Congress that the Constitution was a grant of limited power to the federal government from the citizens or, in other words, the Constitution was not designed to allow the government to restrain the people, but to allow the people to restrain the government. Of course, the customary lip service is given to the Constitution insofar as the committee report for this bill follows the rule of citing Constitutional authority and cites Art. I, Section 8, which is where one might look to find a specific enumerated power. However, the report cites only clause 18, which begs some further citation. While Clause 18 contains the “necessary and proper” clause, it limits Congress to enacting laws necessary and proper to some more specifically (i.e. foregoing) enumerated power. Naturally, no such foregoing authority is cited by the advocates of this bill.

2001 Ron Paul 25:4
Without Constitutional authority, this bill goes on to encourage the spending of $10 million of U.S. taxpayers hard-earned money in Sudan but for what purpose? From the text of the bill, we learn that “The United States should use all means of pressure available to facilitate a comprehensive solution to the war in Sudan, including (A) the multilateralization of economic and diplomatic tools to compel the Government of Sudan to enter into a good faith peace process; [note that it says ” compel . . good faith peace“] and (B) the support or creation of viable democratic civil authority and institutions in areas of Sudan outside of government control.” I believe we used to call that nation-building before that term became impolitic. How self- righteous a government is ours which legally prohibits foreign campaign contributions (again with no constitutional authority to regulate campaigns) yet assumes it knows best and, hence, supports dissident and insurgent groups in places like Cuba, Sudan and around the world. The practical problem here is that we have funded dissidents in such places as Somalia who ultimately turned out to be worse than the incumbent governments. Small wonder the U.S. is the prime target of citizen-terrorists from countries with no real ability to retaliate militarily for our illegitimate and immoral interventions.

2001 Ron Paul 25:5
The legislative “tools” to be used to “facilitate” this aforementioned “comprehensive solution” are as frightening as the nation-building tactics. For example, “It is the sense of the Congress that . . . the United Nations should be used as a tool to facilitate peace and recovery in Sudan.” One can only assume this is the same United Nations which booted the United States off its Human Rights Commission in favor of, as Canadian Sen. Jerahmiel S. Grafstein, called them recently, “Those exemplars of human rights nations . . . Algeria, China, Saudi Arabia, Uganda, Armenia, Pakistan, Syria and Vietnam.”

2001 Ron Paul 25:6
The bill does not stop there, however, in intervening in the civil war in Sudan. It appears that this congress has found a new mission for the Securities and Exchange Commission who are now tasked with investigating “the nature and extent of . . . commercial activity in Sudan” as it relates to “any violations of religious freedom and human rights in Sudan.” It seems we have finally found a way to spend those excessive fees the SEC has been collecting from mutual fund investors (read: retirees) despite the fact we cannot seem to bring to the floor a bill to actually reduce those fees which have been collected in multiples above what is necessary to fund this agency’s previous (and again unconstitutional) mission.

2001 Ron Paul 25:7
There is more, however. Buried deep within the bill in Section 9 we find what may be the real motivation for the intervention — OIL. It seems the bill also tasks the Secretary of State with generating a report detailing “a description of the sources and current status of Sudan’s financing and construction of infrastructure and pipelines for oil exploitation, the effects of such financing and construction on the inhabitants of the regions in which the oil fields are located.” Talk about corporate welfare and the ability to socialize the costs of foreign competitive market research on the U.S. taxpayer!

2001 Ron Paul 25:8
Yes, Mr. Speaker, this bill truly has it all — an unconstitutional purpose, the morally bankrupt intervention in dealings between the affairs of foreign governments and their respective citizens in our attempt to police the world, more involvement by a United Nations proven inept at resolving civil conflicts abroad, the expansion of the SEC into State Department functions and a little corporate welfare for big oil, to boot. How can one not support these legislative efforts?!

2001 Ron Paul 25:9
Mr. Speaker, I oppose this bill for the each of above-mentioned reasons and leave to the ingenuity, generosity, and conscience of each individual in this country to make their own private decision as to how best render help to citizens of Sudan and all countries where human rights violations run rampant.

2001 Ron Paul Chapter 26

http://www.house.gov/paul/congrec/congrec2001/cr061301B.htm
June 13, 2001

HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 13, 2001
Turning Eighteen in America: Thoughts on Conscription


2001 Ron Paul Chapter 27

http://www.house.gov/paul/congrec/congrec2001/cr061301C.htm
June 13, 2001

2001 Ron Paul 27:1
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 13, 2001
Faith Based Initiatives


2001 Ron Paul Chapter 28

http://www.house.gov/paul/congrec/congrec2001/cr062101.htm
June 21, 2001

2001 Ron Paul 28:1
INTRODUCTION OF FOODS ARE NOT DRUGS ACT — HON. RON PAUL
(Extensions of Remarks - June 21, 2001)


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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, June 21, 2001

2001 Ron Paul Chapter 29

http://www.house.gov/paul/congrec/congrec2001/cr062701.htm
June 27, 2001
“POSTAL SERVICE HAS ITS EYE ON YOU” — HON. RON PAUL
(Extensions of Remarks - June 27, 2001)


2001 Ron Paul 29:1
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2001 Ron Paul 29:2
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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 27, 2001

2001 Ron Paul Chapter 30

http://www.house.gov/paul/congrec/congrec2001/cr062801.htm
June 28, 2001
INTRODUCTION OF EDUCATION BILLS -- HON. RON PAUL
(Extensions of Remarks - June 29, 2001)
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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, June 28, 2001

2001 Ron Paul Chapter 31

http://www.house.gov/paul/congrec/congrec2001/cr071701.htm
July 17, 2001
REIMPORTATION OF FDA-APPROVED PHARMACEUTICALS -- HON. RON PAUL
(Extensions of Remarks - July 17, 2001)


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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, July 17, 2001

2001 Ron Paul Chapter 32

http://www.house.gov/paul/congrec/congrec2001/cr071701B.htm
July 17, 2001
A BAD OMEN
-- (House of Representatives - July 17, 2001)
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2001 Ron Paul 32:1
   The SPEAKER pro tempore. Under the Speaker’s announced policy of January 3, 2001, the gentleman from Texas (Mr. PAUL ) is recognized during morning hour debates for 5 minutes.

2001 Ron Paul 32:2
   Mr. PAUL . Mr. Speaker, the trial of Slobadon Milosevic threatens U.S. sovereignty. The fact that this trial can be carried out, in the name of international justice, should cause all the Americans to cast a wary eye on the whole principal of the U.N. War Crimes Tribunal. The prosecution of Milosevic , a democratically elected and properly


2001 Ron Paul 32:3
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disposed leader of a sovereign country, could not be carried out without full U.S. military and financial support. Since we are the only world superpower, the U.N. court becomes our court under our control. But it is naive to believe our world superpower status will last forever. The precedence now being set will 1 day surely come back to haunt us.

2001 Ron Paul 32:4
   The U.S. today may enjoy dictating policy to Yugoslavia and elsewhere around the world, but danger lurks ahead. The administration adamantly and correctly opposes our membership in the permanent International Criminal Court because it would have authority to exercise jurisdiction over U.S. citizens without the consent of the U.S. government. But how can we, with a straight face, support doing the very same thing to a small country, in opposition to its sovereignty, courts, and constitution. This blatant inconsistency and illicit use of force does not go unnoticed and will sow the seeds of future terrorist attacks against Americans or even war.

2001 Ron Paul 32:5
   Money, as usual, is behind the Milosevic’s extradition. Bribing Serbian Prime Minister Zoran Djindjic, a U.S.-sponsored leader, prompted strong opposition from Yugoslavian Prime Minister Zoran Zizic and Yugoslavian President Vojislaw Kostunica.

2001 Ron Paul 32:6
   A Belgrade historian, Aleksa Djilas, was quoted in The New York Times as saying: “We sold him for money, and we won’t really get very much money for it. The U.S. is the natural leader of the world, but how does it lead? This justifies the worst American instincts, reinforcing this bullying mentality.”

2001 Ron Paul 32:7
    Milosevic obviously is no saint but neither are the leader of the Croates, the Albanians or the KLA. The NATO leaders who vastly expanded the death and destruction in Yugoslavia with 78 days of bombing in 1999 are certainly not blameless. The $1.28 billion promised the puppet Yugoslavian government is to be used to rebuild the cities devastated by U.S. bombs. First, the American people are forced to pay to bomb, to kill innocent people and destroy cities, and then they are forced to pay to repair the destruction, while orchestrating a U.N. kangaroo court to bring the guilty to justice at the Hague.

2001 Ron Paul 32:8
   For all this to be accepted, the press and internationalists have had to demonize Milosevic to distance themselves from the horrors of others including NATO.

2001 Ron Paul 32:9
   NATO’s air strikes assisted the KLA in cleansing Kosovo of Serbs in the name of assisting Albanian freedom fighters. No one should be surprised when that is interpreted to mean tacit approval for Albanian expansionism in Macedonia. While terrorist attacks by former members of the KLA against Serbs are ignored, the trial of the new millennium, the trial of Milosevic , enjoys daily support from the NATO-U.S. propaganda machine.

2001 Ron Paul 32:10
   In our effort to stop an independent-minded and uncooperative with the international community president of a sovereign country, U.S. policy was designed to support an equally if not worse organization, the KLA.

2001 Ron Paul 32:11
   One of the conditions for ending the civil war in Kosovo was the disbanding of the KLA. But the very same ruthless leaders of the KLA, now the Liberation Army of Presovo, are now leading the insurrection in Macedonia without NATO lifting a finger to stop it. NATO’s failed policy that precipitated the conflict now raging in Macedonia is ignored.

2001 Ron Paul 32:12
   The U.N. War Tribunal in the Hague should insult the intelligence of all Americans. This court currently can only achieve arrest and prosecution of leaders of poor, small, or defeated nations. There will be no war criminals brought to the Hague from China, Russia, Britain, or the United States no matter what the charges. But some day this approach to world governing will backfire. The U.S. already has suffered the humiliation of being kicked off the U.N. Human Rights Commission and the Narcotics Control Commission. Our arrogant policy and attitude of superiority will continue to elicit a smoldering hatred toward us and out of sheer frustration will motivate even more terrorist attacks against us.

2001 Ron Paul 32:13
   Realizing the weakness of the charges against Milosevic the court has quietly dropped the charges for committing genocide. In a real trial, evidence that the British and the United States actually did business with Milosevic would be permitted. But almost always, whoever is our current most hated enemy, has received help and assistance from us in the past. This was certainly the case with Noriega and Saddam Hussein and others, and now it’s Milosevic .

2001 Ron Paul 32:14
    Milosevic will be tried not before a jury of his peers but before a panel of politically appointed judges, all of whom were approved by the NATO countries, the same countries which illegally bombed Yugoslavia for 2 1/2 months. Under both U.N. and international law the bombing of Serbia and Kosovo was illegal. This was why NATO pursued it and it was not done under a U.N. resolution.

2001 Ron Paul 32:15
   Ironically, the mess in which we’ve been engaged in Yugoslavia has the international establishment supporting the side of Kosovo independence rather than Serbian sovereignty. The principle of independence and secession of smaller government entities has been enhanced by the breakdown of the Soviet system. If there’s any hope that any good could come of the quagmire into which we’ve rapidly sunk in the Balkans, it is that small independent nations are a viable and reasonable option to conflicts around the world. But the tragedy today is that no government is allowed to exist without the blessing of the One World Government leaders. The disobedience to the one worlders and true independence is not to be tolerated. That’s what this trial is all about. “Tow the line or else,” is the message that is being sent to the world.

2001 Ron Paul 32:16
   NATO and U.S. leaders insist on playing with fire, not fully understanding the significance of the events now transpiring in the Balkans. If policy is not quickly reversed, events could get out of control and a major war in the region will erupt.

2001 Ron Paul 32:17
   We should fear and condemn any effort to escalate the conflict with troops or money from any outside sources. Our troops are already involved and our money calls the shots. Extricating ourselves will get more difficult every day we stay. But the sooner we get out the better. We should be listening more to candidate George Bush’s suggestion during the last campaign for bringing our troops home from this region.

2001 Ron Paul 32:18
   The Serbs, despite NATO’s propaganda, will not lightly accept the imprisonment of their democratically elected (and properly disposed) president no matter how bad he was. It is their problem to deal with and resentment against us will surely grow as conditions deteriorate. Mobs have already attacked the American ambassador to Macedonia for our inept interference in the region. Death of American citizens are sure to come if we persist in this failed policy.

2001 Ron Paul 32:19
   Money and power has permitted the United States the luxury of dictating terms for Milosevic’s prosecution, but our policy of arbitrary interventions in the Balkans is sowing the seeds of tomorrow’s war.

2001 Ron Paul 32:20
   We cannot have it both ways. We cannot expect to use the International Criminal Tribunal for Yugoslavia when it pleases us and oppose the permanent International Criminal Court where the rules would apply to our own acts of aggression. This cynical and arrogant approach, whether it’s dealing with Milosevic , Hussein, or Kadafi, undermines peace and presents a threat to our national security. Meanwhile, American citizens must suffer the tax burden from financing the dangerous meddling in European affairs, while exposing our troops to danger.

2001 Ron Paul 32:21
   A policy of nonintervention, friendship and neutrality with all nations, engagement in true free trade (unsubsidized trade with low tariffs) is the best policy if we truly seek peace around the world. That used to be the American way.

2001 Ron Paul Chapter 33

http://www.house.gov/paul/congrec/congrec2001/cr071701C.htm
July 17, 2001
STATEMENT FOR WE THE PEOPLE PRESS CONFERENCE


07/17/01
 

2001 Ron Paul 33:1
My office has received hundreds of phone calls, faxes, emails, and letters supporting Mr. Schulz and Mr. Croteau. I think they are sincere in their beliefs, even though I strongly disagree with their hunger strike. I believe we can work with the IRS, the administration, and Congress to get answers to their questions, and I know that Congressman Bartlett and I are willing to assist them in their efforts. However, it is imperative that these gentleman end their fast immediately. No cause is served by their needless suffering.

2001 Ron Paul 33:2
The validity of their claims about the tax laws and the 16th Amendment is uncertain. Yet I support Mr. Schulz’s right to petition his government, to have his petition heard and taken seriously. The IRS should meet with him, and respond formally to his questions. His First Amendment petition should not be dismissed simply because his viewpoint is not shared by IRS officials. Indeed, the right to a formal response is inherent in the constitutional right to petition the government.

2001 Ron Paul 33:3
The attention generated by Mr Schulz and his organization shows that many Americans are fed up with the tax system. It’s an outrage that most tax professionals, much less typical taxpayers, cannot understand the incredibly complex tax code. It’s an outrage that so many have had their lives destroyed by the IRS. One thing is clear: The Founding Fathers never intended a nation where citizens pay nearly half of everything they earn to government. Congress needs to address the tax mess legislatively, by drastically simplifying and drastically reducing taxes. My own legislation would repeal the 16th Amendment and put an end to individual income taxes.

2001 Ron Paul 33:4
Mr. Schulz and thousands of other Americans have very strong feelings about our tax system, and it needs to be fixed. Their voices should not be ignored. Mr. Schulz and his supporters can make their voices heard at the ballot box, by electing candidates who sincerely believe in changing the tax system.

2001 Ron Paul Chapter 34

http://www.house.gov/paul/congrec/congrec2001/cr071801.htm
July 18, 2001
Statement Paul Amendment to Defund the UN
   Amendment No. 6 offered by Mr. PAUL :

2001 Ron Paul 34:1
    SEC. 801. None of the funds appropriated in this Act may be used for any United States contribution to the United Nations or any affiliated agency of the United Nations.

2001 Ron Paul 34:2
   The Chair recognizes the gentleman from Texas (Mr. Paul).

2001 Ron Paul 34:3
   Mr. PAUL. Mr. Chairman, I yield myself such time as I may consume.

2001 Ron Paul 34:4
   Let me just read the amendment because it is just three lines. It says, “None of the funds appropriated in this act may be used for any United States contribution to the United Nations or any affiliated agency of the United Nations.” It would defund the United Nations. It would take away the dues that we pay the United Nations as well as the amount of money that we are paying to pay our back dues.

2001 Ron Paul 34:5
   I think this is an appropriate time to discuss the reasonableness for our support for the United Nations. The government of the United States has continued to grow as our state sovereignty has gotten much smaller, but now we are losing a lot of sovereignty to an international government which is the United Nations. Just recently, the United States was humiliated by being voted off by secret ballot from the U.N. Human Rights Commission and Sudan was appointed in our place. How could anything be more humiliating. So democracy ruled, our vote counted as one, the same value as the vote of Red China or Sudan. But the whole notion that we would be put off the Human Rights Commission and Sudan, where there is a practice of slavery, is put on the Human Rights Commission should be an insult to all of us.

2001 Ron Paul 34:6
   In committee, we dealt with this problem and we said, “Well, if the U.N. straightens up, then we’ll pay our dues this year; but maybe we’ll withhold our dues next year.” That is very, very weak; and it does not show any intent or show any rejection of what is going on in the United Nations.

2001 Ron Paul 34:7
   It was mentioned earlier in debate on the gun issue that the U.N. is currently meeting up in New York dealing with the gun issue. There have been explicit proposals made at the United Nations to have worldwide gun control. No, they are not taking guns away from the government. They are taking guns away from civilians.

2001 Ron Paul 34:8
   If anybody understands our history, they will know that taking guns from civilians is exactly opposite of what the Founders intended. In a nation like Afghanistan, they were able to defend the invasion of the Soviet Union because individuals had guns. Likewise, when the Nazis were murdering the Jews, the Jews had been denied the right to own guns. Now we are talking about the United Nations having international gun laws. There have been proposals made for an international tax on all financial transactions. Yes, it is true, it has not been passed, but these are the plans that have been laid and they are continued to be discussed and they are moving in that direction.

2001 Ron Paul 34:9
   Today we have international government that manages trade through the WTO. We have international government that manages all international financial transactions through the IMF. We have an international government that manages welfare through the World Bank. Do these institutions really help the poor people of the world? Hardly. They help the people who control the hands of power in these international institutions and generally they help the very wealthy, the bankers, and the international corporations.

2001 Ron Paul 34:10
   It was said the United Nations may have been set up to help preserve peace and help poor people, but it just does not happen. The poor pay the taxes and the international corporations gain the benefit.

2001 Ron Paul 34:11
   The U.S. has taken a very strong position against endorsing the International Criminal Court. The argument is legitimate. It says that, oh, someday the International Criminal Court may arrest Americans because it just may be that Americans may pursue illegal acts of war, like bombing other countries and killing innocent people.

2001 Ron Paul 34:12
   No, we do not want the international court to apply to us, but it is okay with our money, our prestige and our pressure to endorse the International Criminal Tribunal for Yugoslavia, so that we can go in there and arrest the leaders that we have decided were the bad guys and leave the good guys alone, as if there were not bad guys on both sides in Yugoslavia.

2001 Ron Paul 34:13
   But this presumption on our part that we can control the United Nations and arrest only those individuals that we do not like and allow the other ones to go free and that this will never apply to us, I think we are missing the point and it is a dangerous trend. Because you say, well, yes, we are powerful, we have the money and we have the weapons and we can dictate to the United Nations. They will not arrest us or play havoc with us. Yet at the same time we have already recognized that the U.N. Human Rights Commission which was voted on by a democratic vote kicked us in the face and kicked us off.

2001 Ron Paul 34:14
   I think this is a time to think very seriously about whether this is wise to continue the funding of the United Nations. I think that a statement ought to be made. We should say, and the American people, I think, agree overwhelmingly that it is about time that we quit policing the world and paying the bills at the United Nations way out of proportion to our representation and at the same time being humiliated by being kicked off these commissions by majority vote.

2001 Ron Paul Chapter 35

http://www.house.gov/paul/congrec/congrec2001/cr071901.htm
July 19, 2001
Statement on the Community Solutions Act of 2001


2001 Ron Paul 35:1
   Mr. PAUL. Mr. Speaker, no one familiar with the history of the past century can doubt that private charities, particularly those maintained by persons motivated by their faith to perform charitable acts, are more effective in addressing social needs than federal programs. Therefore, the sponsors of HR 7, the Community Solutions Act, are correct to believe that expanding the role of voluntary, religious-based organizations will benefit society. However, this noble goal will not be accomplished by providing federal taxpayer funds to these organizations. Instead, federal funding will transform these organizations into adjuncts of the federal government and reduce voluntary giving on the part of the people. In so doing, HR 7 will transform the majority of private charities into carbon copies of failed federal welfare programs.

2001 Ron Paul 35:2
   Providing federal funds to religious organizations gives the organizations an incentive to make obedience to federal bureaucrats their number-one priority. Religious entities may even change the religious character of their programs in order to please their new federal paymaster. Faith-based organizations may find federal funding diminishes their private support as people who currently voluntarily support religious organizations assume they “gave at the (tax) office” and will thus reduce their levels of private giving. Thus, religious organizations will become increasingly dependent on federal funds for support. Since “he who pays the piper calls the tune” federal bureaucrats and Congress will then control the content of “faith-based” programs.

2001 Ron Paul 35:3
   Those who dismiss these concerns should consider that HR 7 explicitly forbids proselytizing in “faith-based’ programs receiving funds directly from the federal government. Religious organizations will not have to remove religious icons from their premises in order to receive federal funds. However, I fail to see the point in allowing a Catholic soup kitchen to hang a crucifix on its wall or a Jewish day care center to hang a Star of David on its door if federal law forbids believers from explaining the meaning of those symbols to persons receiving assistance. Furthermore, proselytizing is what is at the very heart of the effectiveness of many of these programs!

2001 Ron Paul 35:4
   H.R. 7 also imposes new paperwork and audit requirements on religious organizations, thus diverting resources away from fulfilling the charitable mission. Supporters of HR 7 point out that any organization that finds the conditions imposed by the federal government too onerous does not have to accept federal grants. It is true no charity has to accept federal grants. It is true no charity has to accept federal funds, but a significant number will accept federal funds in exchange for federal restrictions on their programs, especially since the restrictions will appear “reasonable” during the program’s first few years. Of course, history shows that Congress and the federal bureaucracy cannot resist imposing new mandates on recipients of federal money. For example, since the passage of the Higher Education Act the federal government has gradually assumed control over almost every aspect of campus life.

2001 Ron Paul 35:5
   Just as bad money drives out good, government-funded charities will overshadow government charities that remain independent of federal funding. After all, a federally-funded charity has the government’s stamp of approval and also does not have to devote resources to appealing to the consciences of parishioners for donations. Instead, government-funded charities can rely on forced contributions from the taxpayers. Those who dismiss this as unlikely to occur should remember that there are only three institutions of higher education today that do not accept federal funds and thus do not have to obey federal regulations.

2001 Ron Paul 35:6
   We have seen how federal funding corrupts charity in our time. Since the Great Society, many organizations which once were devoted to helping the poor have instead become lobbyists for ever-expanding government, since a bigger welfare state means more power for their organizations. Furthermore, many charitable organizations have devoted resources to partisan politics as part of coalitions dedicated to expanding federal control over the American people.

2001 Ron Paul 35:7
   Federally-funded social welfare organizations are inevitably less effective than their counterparts because federal funding changes the incentives of participants in these organizations. Voluntary charities promote self-reliance, while government welfare programs foster dependency. In fact, it is in the self-interests of the bureaucrats and politicians who control the welfare state to encourage dependency. After all, when a private organization moves a person off welfare, the organization has fulfilled its mission and proved its worth to donors. In contrast, when people leave government welfare programs, they have deprived federal bureaucrats of power and of a justification for a larger amount of taxpayer funding.

2001 Ron Paul 35:8
   Accepting federal funds will corrupt religious institutions in a fundamental manner. Religious institutions provide charity services because they are commanded to by their faith. However, when religious organizations accept federal funding promoting the faith may take a back seat to fulfilling the secular goals of politicians and bureaucrats.

2001 Ron Paul 35:9
   Some supporters of this measure have attempted to invoke the legacy of the founding fathers in support of this legislation. Of course, the founders recognized the importance of religion in a free society, but not as an adjunct of the state. Instead, the founders hoped a religious people would resist any attempts by the state to encroach on the proper social authority of the church. The Founding Fathers would have been horrified by any proposal to put churches on the federal dole, as this threatens liberty by subordinating churches to the state.

2001 Ron Paul 35:10
   Obviously, making religious institutions dependent on federal funds (and subject to federal regulations) violates the spirit, if not the letter, of the first amendment. Critics of this legislation are also correct to point out that this bill violates the first amendment by forcing taxpayers to subsidize religious organizations whose principles they do not believe. However, many of these critics are inconsistent in


2001 Ron Paul 35:11
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that they support using the taxing power to force religious citizens to subsidize secular organizations.

2001 Ron Paul 35:12
   The primary issue both sides of this debate are avoiding is the constitutionality of the welfare state. Nowhere in the Constitution is the federal government given the power to level excessive taxes on one group of citizens for the benefit of another group of citizens. Many of the founders would have been horrified to see modern politicians define compassion as giving away other people’s money stolen through confiscatory taxation. After all, the words of the famous essay by former Congressman Davy Crockett, that money is “Not Yours to Give.”

2001 Ron Paul 35:13
   Instead of expanding the unconstitutional welfare state, Congress should focus on returning control over welfare to the American people. As Marvin Olaksy, the “godfather of compassionate conservatism,” and others have amply documented, before they were crowded out by federal programs, private charities did an exemplary job at providing necessary assistance to those in need. These charities not only met the material needs of those in poverty but helped break many of the bad habits, such as alcoholism, taught them “marketable” skills or otherwise engaged them in productive activity, and helped them move up the economic ladder.

2001 Ron Paul 35:14
   Therefore, it is clear that instead of expanding the unconstitutional welfare state, Congress should return control over charitable giving to the American people by reducing the tax burden. This is why I strongly support the tax cut provisions of H.R. 7, and would enthusiastically support them if they were brought before the House as a stand alone bill. I also proposed a substitute amendment which would have given every taxpayer in America a $5,000 tax credit for contributions to social services organizations which serve lower-income people. Allowing people to use more of their own money promotes effective charity by ensuring that charities remain true to their core mission. After all, individual donors will likely limit their support to those groups with a proven track record of helping the poor, whereas government agencies may support organizations more effective at complying with federal regulations or acquiring political influence than actually serving the needy.

2001 Ron Paul 35:15
   Many prominent defenders of the free society and advocates of increasing the role of faith-based institutions in providing services to the needy have also expressed skepticism regarding giving federal money to religious organizations, including the Reverend Pat Robinson, the Reverend Jerry Falwell, Star Parker, Founder and President of the Coalition for Urban Renewal (CURE), Father Robert Sirico, President of the Action Institute for Religious Liberty, Michael Tanner, Director of Health and Welfare studies at the CATO Institute, and Lew Rockwell, founder and president of the Ludwig Von Misses Institute. Even Marvin Olaksy, the above-referenced “godfather of compassionate conservatism,” has expressed skepticism regarding this proposal.

2001 Ron Paul 35:16
   In conclusion, Mr. Speaker, because H.R. 7 extends the reach of the immoral, unconstitutional welfare state and thus threatens the autonomy and the effectiveness of the very faith-based charities it claims to help, I urge my colleagues to reject it. Instead, I hope my colleagues will join me in supporting a constitutional and compassionate agenda of returning control over charity to the American people through large tax cuts and tax credits.

2001 Ron Paul Chapter 36

http://www.house.gov/paul/congrec/congrec2001/cr072401.htm
July 24, 2001
THE PATIENT PRIVACY ACT -- HON. RON PAUL
(Extensions of Remarks - July 24, 2001)


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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, July 24, 2001

2001 Ron Paul Chapter 37

http://www.house.gov/paul/congrec/congrec2001/cr072601.htm
July 26, 2001
LIFT THE UNITED STATES EMBARGO ON CUBA -- HON. RON PAUL
(Extensions of Remarks - July 26, 2001)


2001 Ron Paul 37:1
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2001 Ron Paul 37:2
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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, July 26, 2001


2001 Ron Paul Chapter 38

http://www.house.gov/paul/congrec/congrec2001/cr072601B.htm
July 26, 2001
A NEWSPAPER ARTICLE ON THE LIFE OF FREDERIC BASTIAT -- HON. RON PAUL
(Extensions of Remarks - July 26, 2001)


2001 Ron Paul 38:1
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2001 Ron Paul 38:2
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HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, July 26, 2001